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Boeing's recent results highlighted the case for the stock but perhaps not in the way many investors might think. In truth, they were mixed. However,

Boeing's recent results highlighted the case for the stock but perhaps not in the way many investors might think. In truth, they were mixed. However, Boeing's management has conservatively guided expectations, and the stock's valuation is such that merely meeting its medium-term guidance leaves Boeing stock looking like a good value at the moment. Boeing is on track to hit its targets, mainly as airplane production appears to be ramping up as planned. For example, BCA expects to deliver 400 to 450 of its 737 MAX airplanes in 2023, moving to a rate of 50 a month in 2025/2026. The good news is Boeing delivered 103 in the quarter, meaning a rate of roughly 34 a month, and West said: "We are now transitioning production to 38 per month and still plan to increase to 50 per month in the '25-26 timeframe."
This is the most critical part of Boeing's business, as the company's profit margin tends to expand as production volume grows. Boeing stock is worth buying, but it's not as strong a buy after seeing the latest earnings. Boeing is ramping up commercial airplane production -- that's a significant plus. It also has a management, and an impressive board of directors, that understand what investors need right now -- a cautious approach to guidance and solid execution. However, the ongoing issues at BDS are a problem, increasing the company's investment risk. Speaking at a BofA Securities conference on 22 March, chief financial officer Brian West said Boeing Defense, Space & Security (BDS) will post an operating loss in the first quarter of 2023. One of the most-troubled BDS programmes the KC-46 Pegasus aerial refueller remains at the centre of the divisons ongoing financial woes. Already racking up more than $5 billion in punitive charges from the US Department of Defense, the KC-46 is now set to receive another penalty.
West says a supplier quality issue on its 767 commercial airframe production line from which the KC-46 is derived will require the company to fix both production and operational aircraft.
Boeing must meet its cash-flow expectations for 2025/2026, not only to be able to reduce its $52.3 billion in debt but also to have the financial firepower to invest in developing future aircraft and compete with Airbus.
Risk is rising, and Boeing is a bit less of a buy after these results, but on a risk/reward basis, I think the argument still favors the bulls on this stock.
Required
Indicate among the options below which of these investors will buy or not buy Boeing shares based on the arguments presented. Choose the most probable answer.
Question 4 options:
Peter Lynch will probably buy this stock because it is not faddish, it is a defensive stock with a very strong earnings potential. In addition the company can benefit from cost reduction.
Warren Buffett will probably not buy this stock because it does not have a high profit margin, nor does it seem to be trading below its intrinsic value. Furthermore the company does not seem to have a favorable long term prospect.
Howard Mark will probably buy the stock because such buying requires second level thinking because Boeing is failing in all areas. In addition buying Boeing is similar to a contrarian investment philosophy mindset.
Warren Buffett will probably buy this stock because the business is simple and understandable, has a consistent operating history is recovering from a recent unfortunate situation making the shares a value stock. In addition the management is candid by indicating the challenges the firm is facing with BDS saga.

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