The Boeing Company’s Q2 Preview

RBC Capital analysts provided their outlook on The Boeing Company (NYSE:BA) ahead of the company’s upcoming Q2 earnings, expected to be released on July 27.

While the strong June deliveries support confidence into the second half of the year, the analysts believe the focus remains on the MAX production and delivery outlook, the 787 resumption of deliveries, and the 2022 free cash flow guide.

The analysts believe investor expectations for full-year MAX deliveries are closer to 400, and supply chain issues remain a risk (engines, and other items). The analysts expect management to continue to highlight its transition to production rates of 31 per month and to prioritize stability in the MAX production line.

The analysts continue to like the stock near-term on potential catalysts and continue to model positive 2022 free cash flow. However, they reduced their price target on the company’s shares to $200 from $220 on lower multiples reflecting long-term headwinds.