Boeing enters an upward trajectory despite headwinds
The bull case argued for Boeing is that the company is finally on an upward trajectory following strong earnings, a production ramp-up of the 737 MAX, and upcoming FAA certifications.
The argument
The discussion noted that Boeing reported profits well ahead of expectations and outperformed Airbus for the first time since 2019. However, the guest cautioned that escalating Middle East conflicts present a secondary wave of headwinds that could lead airlines to defer aircraft deliveries in upcoming quarters.
The thesis, stress-tested
✓ What validates it
- ✓FAA certifications of two new Boeing models later this year
- ✓Sustained 737 MAX production rates in upcoming quarters
▸ Risks discussed
- ▸Airlines deferring aircraft deliveries due to rising fuel costs
- ▸Geopolitical escalation in the Middle East impacting future quarters
Hear it yourself
"So now seven thirty seven MAX production has ramped back up, and the FAA says certifications for two new Boeing models are on track to happen later this year. But just as Boeing overcomes those problems, it's facing a new set of headwinds from the war in The Middle East."
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