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. ...
Read the full article on Seeking Alpha
For further details see:
Boeing: Despite Serious Issues, I Am Maintaining My Strong Buy Rating