Morgan Stanley Remains Sidelined on Boeing (BA)

Morgan Stanley reiterated an Equalweight rating and $373.00 price target on Boeing (NYSE: BA). Shares of Boeing are up nearly 100% over the last 12-months and 23% at its YTD high, thus seeing a pause in performance amongst a choppy equity market should not come as a surprise, especially when considering its leverage to economic growth.

Analyst Rajeev Lalwani agrees with the consensus view that tariffs on aluminum / steel are minor factors for Boeing due to multi-year agreements, escalation opportunities in contracts, and their modest representation within its cost structure. However, key countries such as China, have limited options in terms of commercial aircraft per the Boeing / Airbus duopoly that exists. And to the extent that China orders are canceled or deferred, the fact that they represent only ~5% of the “identified” order book means that these aircraft should be able to find homes given their oversold position through 2023.

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 $337.10 yesterday.

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