As US stocks sounded the horn of rebound, the share price of Boeing Co, which was "hit hard" by the epidemic earlier, has also skyrocketed, rising 58 per cent since June. However, analysts expect the company's two major risks remain unresolved, and next month's results could deal a blow to the company's share price.

Boeing Co's share price rebounded strongly, but the two major risks have not yet been lifted.

Boeing Co's shares soared 58% this month as of June 8, driven by investor optimism about the reopening of the u.s. economy and the recovery of the airline industry. On June 8th, the stock rose 12% to $230.50 for the sixth day in a row, a rise more reminiscent of hot technology stocks than a century-old manufacturer.

It is worth noting that Boeing Co's performance led to a rise in the Dow Jones Industrial average, which rose 580.60 points this month to 2,189.33, an increase of 580.60 points, making it the biggest contributor to the Dow's 30 stocks over the same period. Boeing Co's rebound was accompanied by a broad rise in other stocks, including airlines, cruise operators and retailers, which were generally hit during the coronavirus pandemic.

The aircraft manufacturer's strong rebound is particularly striking.Because Boeing Co has been dealing with two crises: the air transport downturn caused by the coronavirus and the grounding of his Boeing 737 MAX since two crashes.

However, Boeing Co's share price is still down 29 per cent since the start of the year, 48 per cent below its record in March 2019. The company's shares fell more than 2/3 between February and March as the epidemic led to travel restrictions imposed by governments around the world, paralyzed air traffic and blockades disrupted the global economy.

Last week, airlines such as American Airlines Group and Delta Airlines reported progress in the resumption of flights this summer, as well as stronger-than-expected employment reports, showing that the US economy is on a better footing than many investors had feared. Boeing Co's share price was boosted.

The second quarterly report may not be out of the "darkest hour" yet.

Boeing Co's share price has doubled since the end of March. But in contrast to bullish enthusiasm, most analysts expect the aircraft maker's second-quarter results to be even worse, with a loss of $2.20 per share. Based on the bleak outlook of the aviation industry, Boeing Co's future performance may be even lower, falling short of market expectations for four consecutive quarters.

Cai Rumohr, an analyst at Kewen, believes that investors are too optimistic, which is dangerous. The analyst pointed out why he believes Boeing Co's performance is poor-the culprit is not the coronavirus, but the Boeing 737 MAX. It has been reported that Boeing Co's air passenger traffic has slightly increased, coupled with Boeing Co's announcement that it has resumed production of the 737 MAX model, which means that Boeing Co's situation will soon return to normal, and the company will soon start selling the 737 MAX model.

But Rumohr says this is not going to happen anytime soon for two reasons:First, as the details of the "compensation agreement" Boeing Co is working out with customers reveal, many airlines have asked for delays in delivery. Second, Rumohr warned that it is still uncertain that FAA-certified MAX aircraft will return to flight in the third quarter because of "COVID-19 flight restrictions."In Rumohr's view, it is entirely possible that MAX will not be able to resume flight before September or later.

As a result, Rumohr thinks Boeing Co may deliver only 275 to 300 MAX models next year, only half of what other analysts estimate. Boeing Co said it would build 10 to 20 aircraft a month to help suppliers remain solvent. If the backlog of built aircraft is added, Boeing Co may have more than 350 aircraft in stock by the end of 2021 and cannot be delivered.

If this is the case, it will not only hinder Boeing Co's cash flow in the next few years, but also put the expected returns of analysts at risk. In fact, Rumohr forecast free cash flow of minus $9 billion, or a loss of $2.75 per share, rather than the minus $6.1 billion or $2.20 per share expected by most analysts this quarter. The analyst also believes that Boeing Co will not generate enough additional income or even consider resuming the dividend payout before 2024.

In July, Boeing Co will release second-quarter results, and some of the funds that contributed to the rebound may be profitable because of uncertainty. And if the performance is worse than expected, Boeing Co may face further selling, driving the volatility of the Dow Jones index to intensify.