Bernstein Calls Boeing (BA) 'Best Idea in Aerospace & Defense Presentation'

Bernstein SocGen Group analyst Douglas Harned reiterated an Outperform rating and $249.00 price target on Boeing (NYSE: BA).

The analyst commented: "Best Idea in Aerospace & Defense presentation; Boeing is a momentum stock. It has historically moved rapidly once the company moved onto an upward trajectory at Boeing Commercial Airplanes (BCA). Currently, market demand is set to exceed Boeing’s production capabilities into the 2030s. While Boeing has had many problems over the last seven years, it now appears on track to ramp 737MAX and 787 production. Defense is also now improving. There were no charges in Q1 and Boeing won the F-47 program. Liquidity is no longer an issue, particularly as Boeing prepares to close on the Jeppesen sale. Lastly, valuation works. Our valuation multiple is below what we saw back in the “normal” period for Boeing (i.e., before 737MAX groundings and Covid).

CEO Kelly Ortberg confirmed at our SDC last week that Boeing is close to reaching stable 38/month production on the 737MAX, with 42/month potentially by year-end. 47/month would come at least six months later. Boeing is moving to 7/month on the 787 soon. Certification for the 737-7 and -10 were said to remain on track. Ortberg described improvements in defense, but acknowledged that they are not totally free from challenges. Meeting FCF goals this year and beyond depends most on getting production rates up."

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 $211.47 yesterday.

You May Also Be Interested In

• Bernstein SocGen Group Upgrades Analog Devices (ADI) to Outperform
• Trump administration said to weigh cutting Canada auto tariffs to 15% - Bloomberg
• ClearSign Technologies (CLIR) Tops Q2 EPS by 8c