Boeing (BA) stock jumped more than 6% after Bank of America predicted a sharp rise in aircraft deliveries by the end of March. Investors took the news as a positive sign for the company, which has been battling production delays and regulatory hurdles. BofA maintains a Neutral rating on Boeing with a $185 price target.
Adding to the momentum, Japan Airlines placed an order for 17 new Boeing 737-8 jets, while Boeing’s CFO, Brian West, gave a promising update on cash flow. He noted that Boeing’s cash burn, which reached nearly $14 billion in 2024, is expected to ease by “hundreds of millions” this year as production stabilizes.
Bank of America Expects Boeing’s 737 Deliveries to Climb
Bank of America (BofA) analysts expect Boeing’s 737 deliveries to pick up later this month, potentially exceeding February’s numbers and matching January’s 40-unit total.
Meanwhile, the 787 Dreamliner has seen no deliveries in March so far, but analysts believe Boeing will complete five units before the month ends. That would match January’s total and signal progress in stabilizing wide-body aircraft production.
However, Bank of America believes that Boeing still faces hurdles but expect the impact to be limited. For instance, a recent fire at Boeing’s supplier, SPS Technologies, raised concerns about parts shortages. Also, the FAA proposed new inspections for Boeing’s 787 forward pressure bulkhead to check for possible damage. But Bank of America doesn’t expect these factors to disrupt near-term deliveries.
Japan Airlines Adds to Boeing’s Order Book
In another boost for Boeing, Japan Airlines ordered 17 more 737-8 jets to modernize its domestic fleet, building on a previous 21-unit order from 2023.
At the same time, JAL is replacing its older Boeing 767s with Airbus A321neos, which will be used on routes in and out of Tokyo’s Haneda Airport.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 14 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 9.15% loss in its share price over the past year, the average BA price target of $197.47 per share implies 14.40% upside potential.
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