The 737 MAX line has been aerospace stock Boeing’s (BA) big offering for some time now. But it is not an offering that has come without issues. In fact, LOT Polish Airlines is suing Boeing over the 737 MAX, alleging that Boeing hit critical safety issues around the aircraft as far back as 2016. The news hit investors fairly hard, and sent Boeing shares down modestly in Tuesday afternoon’s trading.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Basically, LOT had plans for the aircraft when, back in 2019, regulators shut down the MAX lineup over safety issues. LOT then sued Boeing back in 2021, looking to replace revenue lost by the groundings. LOT noted that Boeing had engaged in “…lies and deception and…devastating financial harm,” noted LOT attorney Anthony Battista.
Boeing, however, pointed out one critical matter that seemed lost on LOT: LOT is still flying the 737 MAX to this day. Boeing’s own attorney alleged that LOT was “…crying foul and fraud out of one side of their mouth in the courtroom…,” but continued flying. The attorney then delivered a critical blow, saying, “Is that how the victim of a multimillion-dollar fraud scheme behaves?”
Meet the New Month, Same as the Old Month
Boeing’s numbers for April also recently emerged, and the numbers look oddly familiar. Boeing delivered 47 airplanes in April, which was actually one more than the 46 it shipped in March. It was still down a bit from the 51 delivered in February, however.
Of the 47 delivered, 34 were 737 MAX jets, while another six were 787 Dreamliners. Boeing pointed out that there were some deliveries impacted by issues of premium seat certifications, which were delayed. However, Boeing still expects to deliver between 90 and 100 787s this year. And while Boeing fell behind Airbus (EADSY) in April deliveries—Airbus delivered 67 aircraft—Boeing is still ahead for the year with 190 deliveries against Airbus’ 181.
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 15 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 17.1% rally in its share price over the past year, the average BA price target of $273.86 per share implies 16.38% upside potential.
