Boeing's Selloff Seen as Overdone Despite Production Hurdles

Boeing's stock price has taken a hit this week, falling 6% after CEO Kelly Ortberg revealed continued production challenges on several aircraft models.

The company faces headwinds with its 737 and 787 production ramps, as well as a delay to 777X certification, which is now expected in 2027.

Bank of America analysts say the market reaction has been overdone, pointing out that Boeing's turnaround was never going to follow a straight line.

The analysts note noticeable improvement compared to last year and highlight that the bigger near-term risk is a potential strike by the SPEEA union, whose contract expires on October 6.