Boeing 787 deliveries could mean $17 billion windfall: Morgan Stanley

Boeing may be willing to see significant financial support as authority is restored to deliver 787 aircraft.

Morgan Stanley analyst Kristen Liwag has estimated that Boeing could generate $17 billion in sales of the 120 787s it currently has in stock pending delivery.

“This is a major business milestone and unleashes another lever to generate free cash flow,” Liwag wrote in a new note to clients, calling the development a “positive catalyst” for the stock.

Liwag predicted that Boeing would deliver 20,787 aircraft in 2022, rising to 66 in 2023, and then 110 in 2024.

ANA All Nippon Airways Boeing 787 Dreamliner in Brussels, Belgium on January 30, 2022 (Photo by Nicolas Economou/Noor Photo from Getty Images)

The Federal Aviation Administration has reportedly signed off on Boeing’s plan to correct a 787 production problem and resume deliveries. Boeing has not delivered any 787 aircraft since May 2021 while authorities reviewed production defects.

The company delivered 48,787 aircraft in the second quarter of 2019, before production issues arose.

Shares of the airline giant are up more than 7% as of 12:40 PM ET during Monday’s trading session.

The company also had the most visited index page on the Yahoo Finance platform as of midday Monday, underlining investor enthusiasm for Boeing’s improved investment thesis.

Despite this, the 787’s non-delivery continued to hamper Boeing’s financials.

Boeing’s second-quarter sales and non-GAAP operating profit fell 2% and 35%, respectively.

“We expect Boeing to come out of the 737 MAX crisis and start making money in 2022, as the stock is driven by several catalysts including the return of 787 and 737 MAX certification in China, and increased deliveries,” JP Morgan Seth analyst Seifman said in a note. after earnings.

The analyst reiterated an overweight rating for Boeing stock with a $200 price target.

Brian Suzy It is a comprehensive editor and Announcer at Yahoo Finance. Follow Suzy on Twitter Tweet embed and on LinkedIn.

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