Painting the skies brighter after a difficult pandemic situation, Boeing (NYSE:BA) and Airbus (OTHEROTC:EADSF) increased May deliveries indicate a positive position for both aircraft makers. Analysts seem pleased with these developments.
May Marks a Rise in Deliveries and Backlog
Boeing May deliveries saw a 43% surge month-over-month. The 50 jets delivered, however, represented fewer deliveries than those made by its rival company, Airbus, which reported 63 jets (+34% year-over-year) for May. Boeing 737 MAX deliveries stood at 35 compared to only 17 in the prior month, when a manufacturing defect forced the company to fix aircraft pre-delivery.
For May, Boeing locked in 69 orders, which include 59 MAXs and 10 Dreamliners; the order book fell short by 11 cancellations. Airbus gross orders for May stood at 17.
For the first five months of 2023, Boeing delivered 206 aircrafts – that’s fewer than the 244 delivered by Airbus, and Boeing’s net orders stood at 127, significantly lower than the 144 for Airbus. Both Boeing and Airbus expect to seal new aircraft deals in the next week, at the Paris Air Show.
Boeing forecasts MAX deliveries to increase to around 40 per month in the second half of 2023. Dreamliner deliveries may see a lull in June due to a new production glitch indicated last week.
Goldman Views on BA, Airbus Stock
After Boeing reported May orders, Goldman Sachs analyst Noah Poponak reiterated a Buy rating on the stock, with a $291 price target. The analyst commented that the orders are solid, and the Paris Air Show next week is likely to see significant new order activity. Looking ahead, he sees Boeing satisfying 2023 delivery guidance.
Regarding Airbus deliveries, GS believes it is able to achieve 720 jets in this year as the numbers have come in much higher than the typical May seasonality levels.
What is the Prediction for Boeing Stock?
Of the 15 Wall Street Analysts covering Boeing stock, 10 rate it a Buy while five assign it a Hold, taking the consensus rating to a Moderate Buy. The average price target stands at $238.4 implying an 8.2% upside potential. While consensus analyst rating for Airbus stands at Hold with six Buys, three Hold and three Sell, average price target of $146.06 marks a 3.6% upside potential.
Yesterday (June 13), RBC Capital Analyst Kenneth Herbert reaffirmed his Hold rating on the stock. In contrast, in a Jefferies report released June 11, Analyst Sheila Kahyaoglu maintained her Buy rating with a $250 price target on the stock implying a 13.4% upside potential.
