Boeing Co. is set to resume sales of its 737 Max jets to China, which is regarded as a "significant positive" development for the aerospace and defense company, according to a Wall Street analyst's statement on Friday.

A recent report by Bloomberg reveals that two aircraft, previously put in storage, have been prepared for delivery to China. These deliveries are expected to take place within the next few weeks.

Boeing's stock saw an increase of over 2% on Friday, but currently remains in the red for the week.

RBC Capital analyst Ken Herbert clarifies that Boeing's 2023 guidance and future projections do not include any deliveries to China. Thus, the resumption of sales to China not only strengthens delivery numbers but could also help to offset recent production delays at Spirit AeroSystems.

In terms of investment, Herbert believes that investor focus may shift towards the delivery and free cash flow (FCF) outlook for 2025 and 2026. This news is expected to provide further support to the guidance for those years.

Earlier this week, Boeing and supplier Spirit AeroSystems disclosed a new manufacturing problem that impacted one of Boeing's 737 Max models. Although this manufacturing issue does not pose a flight-safety concern, many analysts anticipate delivery delays from the aerospace and defense company.

It is anticipated that China Southern Airlines Co. Ltd. will likely be the first customer to receive a Max aircraft after sales resume.

As of July, Boeing currently has 118 unfilled Max orders, all of which are designated for China. Among these orders, 34 are specifically for China Southern. Additionally, Boeing has orders from Chinese airlines for 25 777 widebody jets and 11 787 "Dreamliner" aircraft.

Boeing's stock has experienced a year-to-date gain of approximately 17%, while the S&P 500 index has seen an advance of roughly 15%.

Private Space Companies Enhance Speed and Frequency of Space Research Projects

Cybin to Acquire Small Pharma in All-Share Transaction

Leave A Reply

Your email address will not be published. Required fields are marked *

Related posts

Workhorse Group Inc. Q3 Revenue Miss and Downbeat Outlook
News

Workhorse Group Inc. Q3 Revenue Miss and Downbeat Outlook

Workhorse Group Inc. reports disappointing third-quarter results with a significant revenue miss and provides a bleak ou...

Korea Electric Power Ends Nine-Quarter Losing Streak
News

Korea Electric Power Ends Nine-Quarter Losing Streak

KEPCO achieves net profit in Q3 2022, ending nine-quarter losing streak due to tariff adjustments and cost management st...

European Telecoms Call for Regulatory Framework Overhaul
News

European Telecoms Call for Regulatory Framework Overhaul

European telecom CEOs have written an open letter calling on the EU to revamp the regulatory framework for the industry,...

BMW Set to Report Second Quarter Results
News

BMW Set to Report Second Quarter Results

BMW is set to release its second quarter results, with analysts predicting higher revenues and earnings. However, the co...