The Boeing (NYSE:BA) share price target was cut to $250 from $300 per share at BofA on Tuesday, with analysts maintaining a Buy rating on the stock.
The analysts told investors in a note that they are lowering their delivery estimates for the plane maker due to supplier concerns.
They note that while "demand remains stronger than ever," BofA believes Boeing will be held back from achieving its 400-450 delivery target for the 737.
The firm expects production to move to above 40 units per month in 2024.
"We are lowering our 2023-2026e estimates to account for headwinds from a) delayed 737 ramp up, b) 777 inventory buildup, c) reversal of customer advances, and d) defense program(s) turnaround," explained the analysts. "We now expect $4bn FCF in 2024e (down from prior ~$10bn), ~$7bn in 2025e, and ~$9bn in 2026e (vs. prior $12bn each)."