EADSY - Boeing deliveries of 737 planes are 'back on track' BofA says
2023-04-04 10:26:54 ET
Boeing ( NYSE: BA ) last month overcame a rocky start to the year by delivering about 46 of its 737 Max jets to bring the quarterly number to approximately 106, analysts at Bank of America said in a report Tuesday, citing data from aviation researcher Cirium.
“These numbers are in line with Boeing’s delivery target of 100-112 737s per quarter to achieve its full year target of 400-450 and exceeded the current 31-a-month production rate, indicating a potential burn off of excess inventories,” Ronald J. Epstein, analyst at Bank of America, said in an April report.
When Boeing ( BA ) reports delivery and order data next week, the numbers may be higher with the inclusion of 737NG deliveries, according to the report.
Boeing’s( BA ) goal to deliver 70-80 of its widebody 787 Dreamliner plane may be more difficult, BofA said. The company resumed 787 output on March 10 and delivered about five of the planes by the end of the month, according to Cirium.
BofA's report came out the same day that Northcoast Research downgraded Boeing ( BA ) to an investment rating of Sell, and questioned the company's ability to hit its delivery targets because of supply-chain constraints.
Airbus, Embraer Deliveries
European rival Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) last month delivered approximately 49 commercial planes, bringing its Q1 total to 115, the data show.
“The first quarter delivery numbers indicate that Airbus will need to deliver 205 aircraft in each of the remaining quarters to meet its annual target of 720 aircraft, a task that looks challenging for the company,” according to BofA.
Brazilian aircraft maker Embraer ( ERJ ) delivered about seven E-Jet passenger planes in Q1, in line with last year’s output.
“Despite being consistent with 2022 figures, Embraer’s ( ERJ ) Q1 E-Jets delivery of ~7 looks soft compared to their annual outlook of 65-70 deliveries,” according to BofA, which has a Buy rating on Embraer ( ERJ ).
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Boeing deliveries of 737 planes are ‘back on track,’ BofA says