According to RBC Capital analysts, investor sentiment regarding Boeing’s (NYSE:BA) progress is crucial, with many perceiving it to be slower than anticipated.

Recently, Boeing submitted its Product Safety and Quality Plan to the FAA, following directives issued after the Alaska Airlines accident in January.

The FAA has stressed the necessity for systemic changes at Boeing and will maintain rigorous oversight, conducting weekly and monthly reviews along with additional inspections.

Furthermore, analysts explained that the FAA will not remove the MAX production cap until it is satisfied with Boeing’s systemic changes, and no specific timeline has been provided.

RBC notes that “most investors view BA’s progress as slower than expected,” citing concerns about the adequacy of Boeing’s outlined Key Performance Indicators (KPIs) for safety and quality improvements.

Analysts add that the FAA’s lack of a clear roadmap and the ongoing production cap could mean this restriction remains in place well into the second half of 2024.

Boeing’s emphasis on the fundamentals of aircraft production has raised concerns about deeper systemic issues that may take longer to address. RBC points out, “The fact that BA is focused on the ‘blocking and tackling’ of aircraft production has many investors concerned that there might be more systemic and structural issues at BA that will take a long time to improve.”

Investors are also closely monitoring Boeing’s upcoming CEO transition, expected to be a significant catalyst for the stock. RBC believes that Boeing’s stock will likely remain range-bound until there is better visibility on the management succession, expected by September 2024.