Analysts say Boeing (BA) Backlog Not Likely to Go Down in Flames

October 12, 2012 1:32 PM EDT
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If Boeing's (NYSE: BA) backlog holds true, the company has enough orders to keep itself busy for 7 years. However, with the recent Quantas cancellation, some are wondering if the planned production rates are a fantasy.

"At the top of the high-risk list is Lion Air, whose mammoth 737 order and short operating history have made it an exemplar of the industry’s excessive growth expectations," said Oppenheimer analyst Yair Reiner.

He performed a study to gauge the likelihood that companies might cancel or defer their orders. Based on the results, doesn't believe the backlog looks all that bad.

"On the whole, our findings were reassuring. While there are clear pockets of risk, the substantial majority of orders appear justified and likely to deliver as planned," he said.

Oppenheimer has an Outperform Rating on Boeing and a price target of $90.

For an analyst ratings summary and ratings history on Boeing click here. For more ratings news on Boeing click here.

Shares of Boeing closed at $70.83 yesterday.

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Qantas on 2012-10-30 15:06:11
Mark as Spam | Reply to this comment

IT's Qantas not Quantas

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