Delivery numbers for March are out from aerospace stock Boeing (BA), and the news is a bit mixed. Some numbers are down, and some have good reason to be down. But investors took it all in stride, and gave Boeing a fractional boost in Tuesday afternoon’s trading.
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The headline number was 46 total jets delivered in March. That is a solid number in isolation, but it is down from the 51 jets Boeing delivered in February. Perhaps the biggest reason for the deficiency was that Boeing spent a lot of time fixing wiring in 25 737 MAX planes. While Boeing did not specify how many planes were delayed as a result, it is safe to say the answer was “some.”
Worse, though, was the news that the 46 delivered jets left Boeing significantly behind Airbus (EADSY), which managed to deliver 60 jets in March. This is nothing new, however, as Boeing has lagged Airbus in deliveries every year since 2018. But Boeing did manage to book 33 new orders, and with two cancellations, that left Boeing 31 orders to the good.
A Concerning Future
Boeing’s outlook going forward is a bit of a mixed bag as well. Recently, the Federal Aviation Administration (FAA) approved Mammoth Freighters’ plan to convert the 777-200LR into a new cargo jet. This means new options in widebody freighters and a new potential win for Boeing. However, NASA shut down Boeing’s contract to build the Exploration Upper Stage for the Space Launch System rocket.
A win here and a loss there balances out. But there are potential long-term ramifications to consider here, especially given that the loss Boeing took was in space. Space is likely to be a big part of the future for Boeing, and the less Boeing has to do with space, the fewer opportunities it will have going forward.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 14 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 42.84% rally in its share price over the past year, the average BA price target of $274.92 per share implies 23.34% upside potential.
