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Here’s Why Boeing Stock Jumped 5.4% on Tuesday


According to a report published by Reuters, Boeing Co. (NYSE: BA) delivered 29 737 MAX jets last month. It also delivered three 777 freighters, a freighter to Atlas Air (NASDAQ: AAWW) and the last of its 747 planes in May.

The company delivered 35 aircraft last month, which takes the total deliveries for the first five months of 2022 to 165 planes. Boeing had delivered a total of 17 jets in the same month last year.

Meanwhile, the Illinois-based company booked 23 gross orders in May, which included 17 wide-body aircraft. For the first five months, Boeing had 236 gross orders in hand.

Boeing said its order backlog grew to 4,192 at the end of May.

Wall Street’s Take

After the company released delivery figures for the month of May, Morgan Stanley (NYSE: MS) analyst Kristine Liwag maintained a Buy rating on the stock with a price target of $215 (76% upside potential).

The analyst, however, is not too happy with the company’s May deliveries, as she expected Boeing to deliver at least 31 MAX aircraft.

Overall, the stock has a Strong Buy consensus rating based on 13 Buys and four Holds. BA’s average price target of $214.33 implies 75.5% upside potential from current levels. Shares have lost 50.5% over the past year.

Conclusion

Even though the company’s MAX 737 delivery figures missed expectations, the total number of aircraft delivered in May seems to be decent, as the planemaker tries to resolve supply chain issues that have impacted the production of its 737 jets. Apart from this, the company is also looking to get regulatory approval to resume the deliveries of its 787 Dreamliner.

BA stock closed 5.4% higher on Tuesday. Further, it inched up 0.7%, at the time of writing, in the pre-market trading session on Wednesday.



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