These days, it seems that nearly all the news about beleaguered aerospace giant Boeing (BA 0.96%) is negative. Quality-control issues, whistleblower controversies, and other pieces of bad press have badly affected sentiment on the company and its stock.
Not every headline was discouraging, though. In mid-May, one analyst following Boeing's fortunes reminded the market that he remained bullish on the shares. Perhaps that counter-intuitive evaluation is the correct one for this beaten-down stock.
Undeterred by recent delivery numbers
The analyst staying resolutely bullish was Deutsche Bank's Scott Deuschle. In a Boeing update, he reiterated his buy recommendation on the shares with a price target of $225 apiece. That implies a 27% upside within the next 12 months from the current price.
Deuschle's latest analysis of the company came after the release of month-to-date sales data. According to these, from May 1 to May 12, Boeing delivered six commercial aircraft, comprised of four 737 Max planes and two 787s.
NYSE: BA
Key Data Points
The prognosticator said that all four of the 737 Max planes seem to have come off the production line in recent weeks. On a slightly dimmer note, according to his research, the pair of 787s came from long-term storage.
"Overall, this looks like a slow start to the month, with month-to-date deliveries tracking below February, March, and April over the same initial 12-day stretch," Deuschle wrote.
Too many concerns for a buy
Although the analyst remains bullish on Boeing, the tone of his latest note doesn't feel overwhelmingly positive -- particularly since he's essentially saying that the recent delivery count is weak.
If I were a Boeing shareholder or someone considering the stock, I'd be concerned not only with that, but also with the other factors currently dampening the price. Those quality-control struggles are concerning, and the company doesn't seem to be addressing them with great urgency.
While Boeing is being weighed down with both fundamental and reputational issues, I don't envision it flying too high in the proximate future. I don't share Deuschle's bullish stance on the stock. In fact, I'd probably sell it if it were in my portfolio.
