BofA Calls Boeing Selloff Overdone After CEO Flags 777X Delay

AnalystIndustry
โดย Proactive·US·Read original
Summary · why it matters

Bank of America said Boeing's roughly 6% weekly selloff is overdone after CEO Kelly Ortberg flagged continued headwinds on the 737 and 787 production ramps and a further delay to 777X certification. Ortberg disclosed that 777X certification testing is now expected to slip into 2027, a delay tied to pending approval for a more durable seal on the GE9X engine supplied by GE Aerospace, though Boeing maintained first deliveries remain on track for next year, matching Bank of America's estimate of zero 777X deliveries in 2026 and 10 in 2027. The analysts called Ortberg's remark that the 737 ramp has yet to stabilize at 47 aircraft per month the most market-moving comment, pointing to in-house wing production as the bottleneck while noting the broader supply chain is holding up. Boeing expects certification of the 737 MAX 10, which makes up 30% of its 737 backlog, very soon, and Bank of America's 2026 forecast of 519 737 deliveries remains unchanged. Bank of America said the comments add some risk to its 2026 free cash flow estimate of $2.4 billion but that it remains comfortable with that forecast for now, and flagged a potential SPEEA strike as the bigger near-term risk, with the union's contract set to expire October 6.

Impact on stocks 4

Aerospace & Aviation▼ · 2 stocks
The Boeing Company
BA
± MixedCapitalrelevance

BofA calls Boeing's ~6% weekly selloff overdone and keeps its 2026 FCF estimate, though it flags added risk and a potential SPEEA strike.

GE Aerospace
GE
▼ NegativeSupplyrelevance

The 777X certification slip is tied to pending approval of a more durable seal on the GE9X engine supplied by GE Aerospace, delaying the engine's program.

Financials▲ · 1 stocks
Bank of America Corp
BAC
± MixedCapitalrelevance

BofA is the analyst issuing the 'selloff overdone' call and maintaining its Boeing forecasts, but the note carries no direct financial impact on BofA itself.

Industrials▲ · 1 stocks

Theme Impact 2

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