Boeing (BA) faces potential downside risk to about 81 737 aircraft deliveries in Q4 based on Ryanair’s (RYAAY) disclosures, Deutsche Bank said in a note to clients Friday.
Deutsche Bank also said Boeing deliveries for October and potentially November and December are likely to be lower due to the reported expansion of the aft pressure bulkhead inspections.
“We think this is likely to result in previously inspected and reworked aircraft requiring an additional inspection and potentially additional rework before they can be delivered,” analysts Scott Deuschle and Megan Makini wrote.
They now expect Boeing 737 deliveries to reach only 384 this year, down from its previous outlook of 404, and Q4 deliveries at 98, compared with its prior forecast of 118 and the Street’s 126.
Deutsche Bank has a hold rating and a $204 price target on Boeing’s stock.