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Boeing Rises as 26 Planes Delivered in January Beat Airbus

Boeing rose after its report of 26 airplanes delivered in January beat archrival Airbus for the first time in two years -- by five planes.
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Boeing  (BA) - Get The Boeing Company Report shares rose Tuesday after the Chicago aerospace giant reported delivery of 26 airplanes in January, beating its archrival Airbus EADSY by five planes.

Bloomberg News noted that the sales beat over Boeing's European rival was its first in two years.

Boeing’s deliveries included 21 of its storied 737 MAX jets, which U.S. regulators cleared to fly in November. They had been grounded in March 2019 after two fatal crashes.

The company also logged four sales during the month, all of them 747-8 planes to Atlas Air Worldwide Holdings.  (AAWW) - Get Atlas Air Worldwide Holdings Report

Boeing shares recently traded at $215.78, up 1.8%. They have ascended 37% over the past three months amid optimism about the 737 MAX return and the distribution of vaccines to fight off the COVID pandemic.

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Morningstar analyst Burkett Huey puts fair value for Boeing at $257. 

“Wide-moat-rated Boeing reported a quarterly improvement that was marred by a reach-forward loss on the 777X program,” he wrote after the company’s earnings report two weeks ago.

“The decrease in 777X program quantities, as well as low guidance in defense and global services, more than offset the time value of money increases in our fair value.

"We’re lowering our fair value estimate to $257 per share from $260 per share to reflect these difficulties. Our fair value implies that Boeing’s commercial deliveries do not sustainably reach 2018 levels until 2025.”

Further, “We think the most optimistic news is that airlines have retired about 1,300 aircraft since the start of the COVID-19 crisis,” Huey said. 

“While we expect airlines will primarily focus on deleveraging after the pandemic, we think they will be able to use sale-leaseback transactions to take delivery of the aircraft.”