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Seaport analyst Richard Safran rates Boeing shares Buy. He has a $246 price target for the stock.
Geoffroy Van der Hasselt/AFP/Getty Images
Boeing
stock fell for a second day following the disclosure of a new quality problem in the supply chain for the 737 MAX jet. Wall Street remains upbeat.
Investors have endured a lot with the MAX. The plane was grounded worldwide between March 2019 and November 2020 following two deadly crashes within five months. The plane has flown without incident since its reintroduction to service, but Boeing (ticker: BA) is still dealing with industrywide supply-chain issues that are constraining production.
Wednesday evening brought the news from Boeing supplier
Spirit AeroSystems Holdings
(SPR) that some fastener holes on 737 aft pressure bulkheads didn’t match specifications. Spirit Aero changed its manufacturing process to address the issues.
It said deliveries to Boeing should be unaffected, which would keep Boeing on track to deliver 400 to 450 MAX jets in 2023, as expected. Still, shares dropped almost 5%. Shares were down 0.3% in early Friday trading. The
S&P 500
and
Dow Jones Industrial Average
were both up about 0.3%.
The string of problems for the MAX feels biblical to Seaport analyst Richard Safran. “Are locusts and boils next?” he asked in a Friday research report. He remains bullish on the outlook for Boeing, despite all that has occurred.
“The optics from successive execution issues on Boeing programs is terrible,” wrote
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