Shares of Boeing B.A seemed to withstand the general market volatility during Friday’s trading session. On a day when the benchmark S&P 500 fell as much as 1.2%, Boeing stock only managed to end the day down a modest 0.56%. The relative strength comes as the company recently announced aircraft orders stemming from management’s plan to deliver four hundred to four hundred and fifty 737 MAX models. Meeting those guidance would raise investor expectations for news of $3 billion to $5 billion in free cash flow, which would further boost dividend payouts and stock buyback allotments.
Management recently signed deals with companies like Ryanair RYAAY and Qatar Airways. In addition, a surge in demand is expected with the resumption of travel for Chinese and foreign nationals. With orders bottoming after an alarming drop in April 2023 and the global travel and defense industry appearing to be recovering, management appears confident of achieving its long-term 2025-2026 targets. Analysts concur with the likelihood of achieving these targets as the stock is currently credited with double-digit upside potential.
Boeing’s cash-flow product line, the 737 MAX jet, is expected to see a surge in production as management senses the resurgence of pent-up demand. As a result, investors can see a 32% increase in 737 shipments in the first quarter 2023 year-over-year, meaning the company may be on track to meet its year-end expectations.
Additionally, Boeing reported 737 deliveries of three hundred and eighty-seven aircraft in 2022, pointing to an expected growth rate of 3.3% to 16.3% for year-end 2023. Of course, these expectations would only be set, let alone met, if a decent order backlog reflected demand.
After Boeing reported a manufacturing defect in its 737 MAX line, Boeing reported a total of 26 deliveries of the jet lineup in April 2023, down more than 50% from those numbers…