Boeing now expects the 787's first flight to occur in Q4 2008, with airlines beginning to take possession of planes in Q3 2009. That's a roughly 15-month delivery delay, but if test-flights and stress-tests go well, as expected, the 787 will be worth the wait: the 787 will easily be the most efficient, creature comfort-filled, advanced commercial jetliner ever built. Further, efficiency will be a major driver of sales, given record-high jet fuel prices. Meanwhile, backorders for the mainstay 747, 757, 767, and 777, and the next-generation 737 suggest at least an additional two years, possibly as many as four years, for the aviation order cycle. The Reuters FY 2008/FY 2009 EPS consensus estimates for BA are $5.98 to $6.99.

The risks? It goes without saying that further delays in the first flight for the 787 Dreamliner would hurt Boeing's results, due to potential order cancellations by airlines. U.S. Government cuts in defense spending would also hurt BA's results.

The First Call mean rating for BA is: Buy [22 firms]. Mean 2008 target: $91 [high: $104, low: $69].

Stock Analysis: Boeing is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from BA's shares. Sell/Stop Loss if you were to purchase shares in this company: $67.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.