Analyst Calls Boeing's Dreamliner Goal 'Near-Herculean and doubt Planemaker Will Be Able To Build Over 100 Planes By 2010
Analyst Steve Binder says he has his doubts Boeing will be able to stick to its ambitious goals -- especially given the planemaker hasn't flown the first Dreamliner yet, and announced delays in initial production last month. "Reaching the planned monthly production rates to achieve 109 deliveries by the end of 2009 is still a near-Herculean task, in our view," said Binder, shortly after a meeting with Boeing management to get an update on the 787 program. Despite that less-than-optimistic summation, however, Binder adds Boeing "shares still offer a relatively attractive risk-reward profile over the next six months," despite the risk of further delays keeping the lid on likely yields below 15 percent. After seeing a strong rise in share value over the past 18 months, Boeing's shares have since dropped off 13% since the beginning of October, ahead of the planemaker's October 10 announcement of a six-month delay in development and first deliveries of the composite-bodied 787.
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