Boeing Could Lower its FY Forecast Soon, Warns BofA After Disappointing 737 Max Deliveries By Investing.com

By Senad Karaahmetovic

Boeing (NYSE:) reported it has received 30 gross new aircraft orders, while it managed to deliver 35 aircraft in August, including 27 737-MAX and 2 787. The company also received 4 cancellations last month.

This comes after the company delivered 26 aircraft in July, which is a total of 61 in the first two months of its fiscal third quarter. Out of these 61, 50 were MAX jets.

A Bank of America analyst sees his forecast of 97 MAX aircraft delivered in Q3 as “increasingly unlikely.” In order to meet the analyst’s forecast, Boeing would have to deliver 47 aircraft in September.

“We maintain our full year delivery forecast of 382 MAX aircraft unchanged, which is still short of management’s low 400s target. If Boeing plans to achieve this target it would imply 42/month for the rest of the year. However, we believe even our 382 estimate may prove optimistic as it would imply 38/month after averaging 29/month YTD,” the analyst said in a client note.

Despite sticking to his prior estimates, the analyst argues Boeing’s Q3 deliveries will likely be closer to 80-85 MAXs.

“We believe Boeing could lower its full year forecast, possibly as soon as management’s next public appearance,” the analyst warned.

He reaffirmed the Neutral rating as he believes “the benefits of the commercial recovery will be offset by continued company-specific headwinds related to the slower than expected ramp on 737 deliveries.”

A Goldman Sachs analyst is more optimistic on Boeing as he says August deliveries were “solid.”

“We expect to see a continued recovery in air traffic and desire for more fuel efficient aircraft driving continued solid order activity moving ahead… We expect the pace of MAX deliveries to accelerate through the end of the year, though China timing remains uncertain,” the analyst told clients in a note.

Goldman Sachs has a Buy rating and a $281 per share price target on Boeing stock.