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Wall Street is Not Viewing Boeing (BA) Correctly, Barclays Says; Target Lifted to $169

April 13, 2015 12:45 PM EDT
Get Alerts BA Hot Sheet
Price: $192.99 +0.54%

Rating Summary:
    23 Buy, 14 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Boeing (NYSE: BA) is flat Monday despite bullish commentary and a price target hike at Barclays. Barclays analyst Carter Copeland reiterated an Overweight rating and boosted his price target on the aerospace giant to $169.00 (from $155.00).

"From a high level, what sticks out to us most today is the sharp divergence between what Wall Street sees in Boeing as a stock and company and what Boeing management sees in terms of the risks and opportunities that the company faces
over both the near term and long term," Copeland said. "Buried in this difference in perspective is a massively overlooked story about risk and return, a story this report is meant to shed some light on."

Copeland said Wall Street sees a "a Challenging Set of Near-Term Obstacles, Offset (Hopefully) With Cash and Capital Deployment."Meanwhile, "Boeing Executives See Long-Term Risk/Return Profiles and Changes That are Revolutionary."

"Unlike investors, BA management's focus seems much longer term and more cost/risk/return-focused than we can recall in sometime, perhaps ever," Copeland commented. " Lower-risk product decisions made in recent years, combined with
new game-changing investments in automation, could point to a much better margin profile than the flattish forecast consensus implies in perpetuity. We think current ~11% BCA margins could someday have upside into the mid-teens, and although the Street seems singularly focused on BA as a cash flow story, we think the long-term margin potential story is being overlooked. Whether this long-term story is close enough to invest in is debatable, but nonetheless, it is extremely significant, in our view."

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 $154.38 yesterday.



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