Boeing Selloff Oversold, Long-Term Recovery Intact Despite Production Delays

Boeing's long-term growth prospects are at stake as the company struggles to increase aircraft production and convert its massive backlog into cash flow.

The remarks of CEO Kelly Ortberg that the process is taking longer than expected sparked a selloff in Boeing shares, but Bank of America Securities came out positive arguing that the market reaction was excessive.

Boeing operates in a complex and highly regulated industry, and despite facing production challenges, the company continues to work toward higher production rates across its key programs.

The company is working to stabilize 737 MAX production at 47 aircraft per month and aims to raise that figure to 52 per month next year, while 787 Dreamliner production remains at 8 aircraft per month.