Bank of America Says Boeing's Selloff Is Overdone Despite CEO Comments on Production Delays
Boeing shares fell nearly 6% after CEO Kelly Ortberg highlighted ongoing production challenges with the 737 and 787 models, as well as a further delay in certifying the 777X. However, Bank of America called this market reaction overblown, noting that Boeing's recovery is expected to be uneven. The certification for the 777X has been pushed back again into 2027 due to pending approval on an engine seal from GE Aerospace. The analysts emphasized improvements in Boeing’s performance compared to a year ago and highlighted potential risks such as a possible strike by SPEEA, whose contract expires October 6. While the CEO noted bottlenecks in wing production for the 737 program, Bank of America said these are typical growing pains during scale-ups. On a positive note, Boeing expects certification of its 737 MAX 10 variant soon, which is crucial to free cash flow and makes up 30% of its backlog. The bank maintains its forecast for 519 737 deliveries in 2026 and $2.4 billion in free cash flow.
Topics: 737 MAX 777X certification Boeing production delays stock selloff