Wedbush Maintains Outperform on Boeing Despite Continued 787 Issues

Wedbush Securities has published a research report on Boeing Company

after the company reported 2011 orders reflecting strength in the 777 and 737 MAX while the 787 continues with issues. In the report, Wedbush writes, "Boeing (BA – OUTPERFORM, $88 PT) was able to [deliver] a total of just three 787s and nine 747-8s, for a total of 12 as compared to the October guidance of 15-20 (~6 787s and 12 747-8s). We continue to believe the 787 deliveries will be un-even through most of 2012, but the focus for investors is the 787 production ramp. We continue to believe that the step up to 3.5/month in April should not be an issue, but the step up to 5 expected in 4Q 12 is the primary challenge for Boeing and its supply chain. For 787 deliveries, the company attributes the delays to both customer issues and one-time items, and does not believe there are any systemic issues. If this is true, we would expect to see a gradual increase in 787 delivers in 2012, where we currently model approximately 55 787 deliveries." Wedbush maintains its Outperform rating and $88 price target on Boeing, which is currently trading up $0.37 from yesterday's $73.53 closing price.