Boeing: Unlocking The $50 Billion Win For The MAX

(19min)

Summary

  • The Boeing Company's 737 MAX backlog and production capacity support a significant ramp-up, with demand and infrastructure aligned for higher BA output and revenue growth.
  • Short-term revenue and profit growth hinge on lifting the FAA's production cap and stabilizing at higher rates, with the potential for $400 billion in revenues by 2034.
  • While an accelerated production increase offers upside, Boeing must prioritize operational stability to avoid jeopardizing long-term prospects and balance sheet improvement.
  • Despite near-term investor impatience, sustainable growth and production reliability are key; pushing too fast risks undermining Boeing’s recovery and future opportunities.
  • Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More »

Boeing 737 MAX 10 Commercial Airliner, Aerospace Industry, Narrow Body Jet Aircraft, Air Travel

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The Boeing Company (NYSE:BA) stock has surged nearly 16% this year, sharply outperforming the S&P 500’s (SP500) 1% gain. The rally reflects renewed momentum around the Boeing 737 MAX and underscores investor confidence in

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This article was written by

19.96K Followers

Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BA, AIR.PA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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