When Will Boeing Resume Deliveries of 787 Jets?

Boeing Co. (NYSE: BA) has communicated to its airline clients and part suppliers that it plans to resume the deliveries of 787 Dreamliner aircraft in the second half of this year, Reuters said, citing people with knowledge of the matter.

The company stopped deliveries of the plane almost a year ago due to structural issues.

The sources said that Boeing had earlier targeted restarting the deliveries of the 787 in April, but the date was pushed to May, with a possibility of further delays.

The Chicago-based airline maker is currently conducting repairs and inspections of around 100 of these aircraft.

Wall Street’s Take

Last week, Wolfe Research analyst Michael Maugeri reiterated a Hold rating on the stock but did not provide a price target.

The analyst said, “We continue to see the fundamental demand backdrop for commercial OEM (original equipment manufacturers) deliveries as favorable, particularly for narrowbody aircraft, but BA still has idiosyncratic issues to work through.”

Overall, the stock has a Strong Buy consensus rating based on 11 Buys and three Holds. Boeing’s average price target of $253.62 implies 38.2% upside potential from current levels. The stock has lost 22.2% over the past year.

Blogger Opinions

TipRanks data shows that financial blogger opinions are 76% Bullish on Boeing, compared to the sector average of 68%.

Conclusion

The delay in the deliveries of 787 jets is expected to cost Boeing $5.5 billion. It also led to American Airlines Group (NASDAQ: AAL) suspending several routes, including those between Seattle and London; Los Angeles and Sydney; and Dallas and Santiago, in February.

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