BOEING CO. News And Technical Analysis – 03 November 2022
03 Nov 2022
Wall Street doubts if Boeing can hit ambitious 2025 targets
Supply pressures may hinder Boeing (NYSE:BA) Co from making about 50 MAX jets per month at least by 2025, from about 31 currently, according to analysts, after the plane maker on Wednesday laid out a plan to speed up its recovery from successive crises.
“We think there will be a healthy level of skepticism as to whether Boeing can actually hit these targets, especially over the next year or so as supply chain issues are likely to remain a challenge,” Vertical Research Partners analyst Robert Stallard said.
Boeing at its first public investor meeting since 2016 said it expects to deliver 800 commercial jets at least by 2025, pegging the MAX and 787 production per month at 50 and 10, respectively. It expects annual cash flow to jump to about $10 billion by 2025 or 2026.
The company expects to deliver 375 MAX planes and generate cash between $1.5 billion and $2 billion this year, after burning cash for three years due to overlapping crises caused by two MAX jet crashes and the pandemic.
“On the supply side, (production targets) will require a significant ramp up from the castings/forgings suppliers, which was a challenge even prior to the pandemic, and remains even more of a challenge today,” Credit Suisse analyst Scott Deuschle said.
BOEING CO. Technical Analysis: Daily Chart
In the daily charts, BOEING CO. is trading in an UP channel. BOEING CO. is currently trading above all SMA.
RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 142.38 & the resistance level is at 152.17.
BOEING CO. will trade in an up channel until there is trend reversal.
How to Trade BOEING CO. this Week:
BOEING CO. will follow the uptrend until there is trend reversal. So, remain bullish on BOEING CO.