Boeing

Airbus stock caught an upgrade to Buy. Boeing’s recent struggles are a factor in the improved outlook. On Tuesday, RBC analyst Ken Herbert upgraded shares of Airbus to Buy from Hold. His target for the price went to EUR192 ($208) from EUR145 ($157). Airbus stock was up 2% in overseas trading at EUR166.50 a share, leaving shares up about 19% so far this year and up about 43% over the past 12 months. “We believe the recent positive shift in sentiment has room to run as recent narrowbody share gains could expand further and investor confidence in the mid-decade targets improves,” wrote Herbert. Narrow-body planes are single-aisle jets such as the A320 and 737 MAX family of aircraft. The positive sentiment shift is the one from Boeing to Airbus as Boeing struggles through more problems with its MAX jets. The Jan. 5 midair blowout of an emergency-door plug on a […]

There’s so much uncertainty around Boeing’s future that its stock has fallen 30% year-to-date, making it the right time to start buying up shares, UBS analysts say in a research note. That short-term shakiness can be chalked up to potential regulatory actions in response to the company’s recent woes, impacts on production of its MAX models and questions around the certification of those planes, making the stock tough to own for existing investors, the analysts say. But on a multi-year horizon, the stock still makes sense as new aircraft demand remains at record levels and supply challenges are poised to keep the market undersupplied for years to come, the analysts say.

Boeing might sell part of its defense business, Bloomberg reported Tuesday. Wall Street, and investors, will be interested in any sale. It’s too early to tell exactly what might be sold so, for now, investors should prepare and watch for what’s next. Boeing didn’t immediately respond to a request for comment about the Bloomberg report. Boeing’s defense business — which it calls Boeing Defense, Space & Security — generated about $25 billion in 2023 sales and an operating loss of about $1.8 billion. It was the second consecutive annual loss for the unit. Fixed price contracts and higher-than-expected inflation have been an issue for many defense contractors in recent years. In the five years before the pandemic, the business generated an average operating profit of about $2.3 billion a year, corresponding to a profit margin of about 9%. Wall Street expects sales to hit about $25.6 billion in 2024, up

Fitch On Boeing, Forecasts Between 420-450 737MAX Deliveries In 2024, Approximately 100 Lower Than Prior Forecasts

Boeing February Booked Gross Orders Include 4 787-9s For Royal Brunei Airlines, 10 737 MAXs And 1 777 Freighter; Delivered 17 737 MAXs, One P-8, 7 787-9 Dreamliners, 2 767s In February; Delivered 27 Jetliners In February.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $172, cut $22, reflects a 24x multiple on our 2025 EPS estimate, below BA’s recent historical forward average, on rising regulatory and operational risk. We cut our 2024 EPS estimate by $0.17 to $3.17 and 2025’s by $0.59 to $7.17. Southwest Airlines (LUV 29 ***) said today that it sees 42% fewer deliveries of 737 MAX aircraft from BA in 2024 than originally expected, and, as a result, would be cutting its capacity in 2024. We view this development as an illustration of the difficulty in scaling production and tightening quality control measures at the same time amid heightened regulatory scrutiny. We note that the Department of Justice has also convened a grand jury over the incident on Alaska Air flight 1282. We

Boeing (BA) reported Tuesday it delivered 27 aircraft in February, the same number as January but down from 28 a year earlier. The plane manufacturer booked 15 gross orders last month, up from 3 in January and 5 a year earlier, according to data on its website.

By Sharon Terlep Under fire for production snafus, Boeing is overhauling how it pays employee bonuses to emphasize quality and safety over meeting financial targets. The move, one of many to address quality issues following the door-plug blowout on an Alaska Air flight, applies to Boeing’s nonunion workforce of more than 100,000 employees, managers and executives, according to a memo sent to employees and reviewed by The Wall Street Journal. The biggest shift will be in the company’s commercial unit, its largest, where safety and quality metrics will now account for 60% of annual bonuses. Previously, financial incentives comprised 75% of the annual award, while the remaining 25% was tied to operational objectives including quality and safety. Metrics that will determine the rewards include employee safety, work done out of sequence on the assembly line and so-called rework required to fix problems. Regulators have criticized the company’s quality controls and

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target remains $194 on P/E analysis. The WSJ reported today that BA is in discussions to acquire key supplier Spirit AeroSystems Holdings (SPR 33 ***). Should a deal occur, it would bring BA’s relationship with SPR full circle, since SPR was spun off from Boeing in 2005. We believe the motivation for any such deal is quality control, as an in-house SPR would likely be easier for BA management to monitor. Given the recent history of manufacturing snafus in both enterprises, as well as the Federal Aviation Administration’s requirement that BA deliver a go-forward plan to address safety deficiencies in 90 days, we think BA is turning over every stone to prevent more defects from occurring. We note possible complications for Airbus (AIR FP EUR153

Boeing (BA) and Spirit Aerosystems (SPR) late Friday confirmed the companies were talking about a possible merger, almost two decades after the aircraft manufacturer spun out its former components unit. “We have been working closely with Spirit AeroSystems and its leadershp to strengthen the quality of the commerical airplanes that we build together,” Boeing said in a statement. “We confirm that our collaboration has resulted in preliminary discussions about making SpiritAeroSystems a part of Boeing again.” Spirit, which builds fuselage and other parts used by Boeing and other aircraft companies, also confirmed the discussions without providing additional details. Spirit said it would not issue updates about the negotiations until “further disclosure is appropriate or required.” Spirit shares were more than 2% higher in after-hours trading, adding to a 15% advance during Friday’s regular session. The Wall Street Journal and other news outlet earlier reported the companies were discussing a potential

Boeing in Preliminary Talks to Buy Spirit AeroSystems, Sources Say — WSJ.

Boeing Appoints Uma Amuluru Human Resources Leader – Michael D’Ambrose announces retirement after four-decade career – Experienced Boeing leader Uma Amuluru to succeed D’Ambrose in leading the company’s global Human Resources organization PR Newswire ARLINGTON, Va., Feb. 22, 2024 ARLINGTON, Va., Feb. 22, 2024 /PRNewswire/ — Boeing [NYSE: BA] today announced Uma Amuluru as the company’s Chief Human Resources Officer and executive vice president, Human Resources, effective April 1. Amuluru succeeds Michael D’Ambrose who announced his plans to retire this July. In her new role, Amuluru will be responsible for Boeing’s talent planning, global talent acquisition, learning and development, compensation and benefits, employee and labor relations, and diversity and inclusion initiatives. She will report to Boeing President and CEO David Calhoun and serve on the company’s Executive Council. “Uma is a superb leader with a strong track record of building terrific teams and strengthening complex organizations. Continuing to invest in