Boeing Risk-Reward Profile 'Looks Compelling' as May MAX Orders See Gains – Baird

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Baird analyst Peter Arment told investors in a note Thursday that the risk-reward profile for Boeing (NYSE:BA) “looks compelling for long-term investors.”

The analyst, who has an Outperform rating and $245 price target on the stock, said they estimate Boeing had 38 total deliveries in May, with 33 being 737-MAX aircraft.

However, their checks show little movement on China lockdowns are severely impacting BA’s ability to transfer aircraft to China, while test flights are ongoing for Chinese 737-MAX aircraft in Seattle.

According to Arment, BA has yet to officially deliver a 737-MAX to China in 2022, with only one aircraft transported to Shanghai from Guam in early April.

Even so, they see “positive catalysts for the BA stock tied to resuming China deliveries and 787 delivery halt recommencing.”

“With a reset in the BA stock and 23% of its current market-cap in FCF through 2024, we believe the risk/reward profile for the BA stock looks compelling for long-term investors,” Arment added.