Investing.com -- Boeing’s aircraft deliveries are expected to rise significantly in the final weeks of March, with 737 deliveries potentially matching January’s levels, according to Bank of America (NYSE:BAC) (BofA).
“According to Cirium, Boeing (NYSE:BA) has delivered 12 737s so far this month. Aero Analysis Partners/AIR (AAP/AIR) anticipates a pick-up in deliveries over the coming weeks, with March deliveries expected to exceed February’s total and potentially match January’s levels of 40 units,” the bank’s analysts wrote.
BofA notes that this aligns with Boeing’s typical end-of-quarter delivery push, a trend often observed in March.
While 737 production started strong in early March, BofA expects final monthly production to settle in the low to mid-twenties range, similar to January levels.
The recent fire at SPS Technologies, which manufactures aerospace components, remains a potential long-term concern, says BofA.
However, analysts believe Boeing’s accumulated inventory should mitigate any immediate production disruptions.
For the 787 program, no deliveries have been recorded so far in March, but AAP/AIR expects five by month-end, matching January’s total.
“Additionally, it expects at least four rollouts for the full month, one unit below February’s numbers and Boeing’s stated rate of five,” the note states.
Meanwhile, the FAA has proposed an airworthiness directive that would require detailed inspections of the 787’s forward pressure bulkhead to check for potential damage.
However, BofA downplays any major impact from this directive, stating that “this is not a new issue, as Boeing has already flagged it in October 2024.” They explain that directive will require routine inspections but will not lead to fleet groundings or factory reopenings.
BofA maintained a Neutral rating on Boeing with a $185 price target.
