Analysts say Boeing (BA) Backlog Not Likely to Go Down in Flames
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Up: 13 | Down: 25 | New: 24
Rating Summary:
15 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
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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, with a 52 week range of $61.33-$77.83.
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"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, with a 52 week range of $61.33-$77.83.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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Qantas on Oct 30, 2012 03:06 PMMark as Spam | Reply to this comment
IT's Qantas not Quantas