Boeing’s June deliveries likely well-ahead of consensus – Baird

Baird analysts reiterated an Outperform rating and a $250 per share price target on Boeing (NYSE:) as the broker’s proprietary delivery checks showed Boeing likely saw a surge in activity in June.

Baird says Boeing likely delivered ~49 737-MAX units with total BCA deliveries for the month at 58 aircraft. The Q2 deliveries were likely 134, ~30% above current Street estimates.

“Momentum at BA’s Renton plant saw a flurry of activity the last 10 days of the month, with ~27 deliveries occurring boosting the June delivery total to ~49 aircraft. Expectations are for 2023 to see an improving supply chain, which supports a transition from Rate 31 to Rate 38 in July and ongoing liquidations of the aircraft in storage. Current MAX delivery guidance for 2023 is a range of 400-450 aircraft. With 163 deliveries through May and 49 deliveries in June, BA is on track regarding the 2023 outlook with over 50% of the guidance delivered with 212 deliveries for the 1H23,” the analysts said in a note.

787 deliveries in June stood at 5, resulting in Q2 deliveries of 14.

“We remain constructive on BA, especially with momentum on 737-MAX,” the analysts added.

Baird sees FCF swinging positive and expects “a robust 2H23 totaling ~$5.5 billion in cash inflow.”