SEC Probe is Not Good News for Boeing (BA) - RBC

RBC affirms its Sector Perform rating and $135 price target on Boeing (NYSE: BA) following news of a possible SEC probe into the company's books.

Analyst Robert Stallard commented: Boeing has been using program accounting for a very long time, and the SEC has not previously had an issue with it as far as we know. Investor interest in this as an issue has ebbed and flowed [...] What has changed of course is the scale of the numbers - Boeing has been booking profits on 787, even though producing the aircraft has racked up a net cash loss of ~$29bn ?so far. And Boeing has booked another charge recently on the 747-8. It is perhaps the eye watering size of this 787 deferred balance that has drawn the SEC's interest.

Stallard continued, This is not good news, and adds to what is already proving to be a tough year for Boeing. The SEC may of course decide not to take things further, but they could of course also decide to take action. A big adjustment to Boeing's accounting would probably not have a cash impact, but we thing it would not be positive for investor sentiment.

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

You May Also Be Interested In

• Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
• IBM (IBM) to Acquire HashiCorp (HCP) for $35/sh Cash or $6.4B
• Boeing (BA) Cut To Baa3 From Baa2 By Moody's, Outlook Negative