Boeing Shares Just Skyrocketed Over This News

Shares of the world’s largest aerospace company Boeing were heading higher on Thursday ater it was reported that the company is planning to resume production of its 737 Max jets at the pre-crash rate.

The company intends to continue production as soon as February according to Reuters.

Reuters reported that Boeing is looking to produce the narrow-body planes at a rate of 52 per month in February and then plans to ramp it to a record 57 jets monthly in June.

It was in April that Boeing had slashed its output of the 737 Max jet by to to 42 a month. The move came after the company had halted deliveries to customers.

There are no guarantees about when the jet however will be cleared by the FAA to return to the skies.
Buckingham analyst Richard Safran also said this week that Boeing stock could go to 400-450, based on expectations for 2020 cash flow.

“There hasn’t been a lot of news recently regarding the MAX return to service. However, one bit of recent news (hiring hundreds of staff at its Moses Lake facility) supports the idea that BA may come close to achieving its early Q$ guide for a MAX return to service,” said the analyst.

Boeing has said that it is working toward getting the 737 MAX flying again commercially in the early fourth quarter.

Disclaimer: We have no position in Boeing Co. (NYSE: BA) and have not been compensated for this article.