BA - Boeing: Despite Serious Issues I Am Maintaining My Strong Buy Rating

2024-06-27 16:33:07 ET

Summary

• Boeing faces production and quality issues with ongoing problems affecting deliveries and investor confidence.
• Despite debt concerns and execution risks, the company's strategic initiatives and potential for long-term growth make it an attractive investment.
• Strong demand for new aircraft, a large backlog, and an undervalued stock position Boeing for substantial returns if it can navigate current challenges.

Introduction

On June 17, I wrote my first article on Airbus ( OTCPK:EADSF ), the world's largest aircraft producer. Although the company recently sold off due to lower full-year guidance related to supply chain issues, it's a company that has all of its ducks in a row, benefitting from strong demand, a pristine balance sheet with more cash than debt, and a wide range of successful aircraft models that do not suffer from reputation risks.

Unfortunately, the same cannot be said about Boeing ( BA ) .

I'm obviously not breaking any news when I say that the giant has been struggling since it started to encounter quality issues in its 737 MAX program, followed by a wide range of other problems , including an Alaska Air ( ALK ) flight earlier this year that lost a door in mid-flight. ...

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