Boeing (BA) Set Up For A Rebound in 2020 - Cowen

Cowen analyst Cai von Rumohr reiterated an Outperform rating and $460.00 price target on Boeing (NYSE: BA) after the company reported Q1 "core" EPS of $3.16 which hit consensus but beat the analyst's $2.75 estimate on strong segment EBIT (+46c) & lower taxes (+30c). He also believes that the decision to suspend guidance makes sense since results depend on the resumption of MAX deliveries, which is out of the company's control.

The analyst stated "We're assuming FAA approval and resumption of U.S. deliveries (~10% of MAX backlog) in July with gradual lift in foreign deliveries in H2 (see our 4/8 note). If this scenario is correct, there will be no MAX deliveries in Q2 and cash flow will reflect an inventory build of ~100 MAXes as well as continuing ramp in 777X tooling /inventory costs. While this will be partially offset by strongly positive 787 cash generation and solid BDS/Service results, our guess is that Q2's cash deficit could be $1.0-2.5B".

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 $377.24 yesterday.

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