Boeing (NYSE:BA) 787 Delay from 3-6 Months Says Gleacher

Consensus on Boeing (NYSE:BA) is the problem with their 787 is a P100 control panel is a failure/installation issue and not an architecture/hardware issue, which would have been a game-changer.

Gleacher noted that as a result of that confirmation, they see a delay of from 3-6 months for the 787.

Gleacher said, "Industry checks continue to point to a component failure/installation issue with the P100 control panel on the 787. This is in-line with our previous checks and is NOT a system

architecture/hardware issue. Nonetheless, we still expect a delay, most likely 3-6 months in total, which would slide certification into late 2Q11 or early 3Q11. If the latter proved to be true, this would be about two months longer than our previous estimates, though certification would still occur in the summer of 2011.

"We continue to estimate BA will have roughly $8.00 per share in earnings power by 2014, almost entirely from non-787 aircraft (i.e., very little 787 contribution). A delay of 6 months or less is baked into the BA stock as there has been a lot of speculation of a 9+-month delay. Despite the upcoming 787 schedule change, we believe the core business still supports an entry point level in low-$60s."

Gleacher reiterated a "Buy" on Boeing, which closed Monday at $64.03, gaining $0.44, or 0.69 percent. They have a price target of $100 on them.