Investor expectations have dimmed for what was supposed to be a crucial year in the manufacturer’s recovery from a half decade of turmoil.

Boeing’s cash balance could dip into in the $8 billion range by the end of the first quarter after paying off some debt at the start of the year, Seth Seifman, an analyst with JPMorgan, told clients. The company ended 2023 with about $16 billion of cash and short-term securities.

Despite the setbacks, Boeing has sufficient reserves to pay for a possible acquisition of Spirit Aero in cash and debt rather than issuing equity, West said. If it’s consummated, the deal would reverse Boeing’s largest outsourcing move after nearly 20 years, allowing the aerospace giant to tighten oversight of its most important parts provider.

FAA Administrator Michael Whitaker told NBC News on Tuesday that he walked away from a recent visit to the manufacturer’s Seattle-area industrial base concerned that the emphasis on boosting production rates had eroded Boeing’s safety culture.

Given the uncertainty around the FAA’s actions on the 737, analyst Robert Stallard of Vertical Research Partners suggested that Boeing should ditch its pre-crisis goal of generating $10 billion in cash by 2025 or 2026 until it has made more progress on sorting out its problems.

West reaffirmed the target on Wednesday, while acknowledging the improvements won’t come until later in the time period.

“The first step towards fixing a problem is acknowledging that it exists,” Stallard told clients. “Boeing’s cut to its free cash flow guidance is an overdue recognition of the situation it is in, but we still worry that it is being overly optimistic.”

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