© Reuters. Boeing (BA) Stock Price Target Cut at Benchmark but Analyst Remains Bullish

By Senad Karaahmetovic

Benchmark analyst Josh Sullivan cut the price target on Boeing (NYSE:) shares to $200 per share from $250 on several headwinds, namely macro concerns, Chinese 737 re-certification, 737-10 FAA certification, and 777x development time-lines.

Still, the analyst’s Q2 EPS estimate of ($0.08) remains ahead of the street at ($0.13). Overall, Sullivan remains bullish on Boeing shares, hence the Buy rating is maintained.

“The multi-year water torture of internal supply side negative news from Boeing is at an inflection point, as CEO Calhoun indicated in June at a conference. This was recently supported by the better than expected 737 deliveries for 2Q as well as an affirmation that the 737 supply chain production is at the previously projected 31/month. The 787, which hasn’t been delivered in a year with +100 units in inventory, is also progressing towards FAA approval and could begin deliveries this summer,” Sullivan told clients in a note.

The analyst also noted very strong demand for global air travel.

All-in-all, Sullivan remains bullish as “the structural consumer shift to services including air travel remains all while BA regains the initiative.”

Source link


Please enter your comment!
Please enter your name here