Boeing Stock Sees Upside Potential in Production Ramp-Up

Boeing's stock has been down 5.6% over the past three months despite delivering its highest number of commercial airplanes since 2018 in the second quarter of this year.

The company delivered 171 commercial airplanes in the second quarter, generating revenue of $24.6 billion, an 8% increase from last year. However, Boeing's profit engine is still running close to idle, with program cash margins on the 737 and 787 sitting just above breakeven.

The key to unlocking Boeing's upside potential lies in its production ramp-up, particularly in the 737 line, which has increased from 42 airplanes per month at the start of this year to 47. The company is guiding for a further increase to 52 planes per month, which could help it reach its target of $10 billion in annual free cash flow by the end of the decade.