UPDATE: Wolfe Research Assumes Boeing (BA) at Peerperform
- Wall Street ends first day of third quarter with solid rebound
- Tesla (TSLA) Delivered 254,695 EV Units in Q2, Below Consensus
- Goldman Sachs Warns Clients of More Equity Market Losses in Second Half of 2022
- Kohl's (KSS) Falls 15% After Ending Sale Talks With Franchise Group and Issuing Q2 Warning
- General Motors Warns It Has 95k Vehicles in Inventory Without Certain Components
Wolfe Research analyst Mike Maugeri assumes coverage on Boeing (NYSE: BA) with a Peerperform rating.
The analyst comments "We see the fundamental demand backdrop for commercial OEM deliveries as favorable, particularly for narrowbody aircraft but BA still has idiosyncratic issues to work through related to burn down of parked inventory and customer concessions on the 737 MAX and 787, and advances that it's been holding on to since the grounding of the 737 MAX in March 2019. Additionally, BA has built up a mountain of debt that takes away value from shareholders. There's likely upside to BA's share price if it can work through these issues and avoid new ones. But we don't have a high degree of confidence that will happen, and we don't expect to see a clear path there by YE22, which is the time period our valuation frameworks target. Our YE22 fair value estimate is $233/sh, we value BA on average 2023-25 EV/FCF discounted back one year at our estimate of BA's WACC. We discuss valuation and our framework later in this section."
Shares of Boeing closed at $217.73 yesterday.
You May Also Be Interested In
- Hongfa Technology Co Ltd (600885:CH) PT Raised to RMB53.70 at Goldman Sachs
- Haitian International (1882:HK) PT Raised to HK$19.40 at Goldman Sachs
- Estun Automation Co Ltd (002747:CH) PT Raised to RMB26.40 at Goldman Sachs
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!