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Fly News Breaks for July 19, 2019
SPR, BA
Jul 19, 2019 | 07:20 EDT
The $5.6B charge Boeing (BA) is taking to compensate airlines is "considerably higher than most expected," but an incremental $2B on a $200B market cap "should not be devastating," JPMorgan analyst Seth Seifman tells investors in a research note. Second, the decision to keep 737 production at 42 per month is likely a relief, especially for suppliers like Spirit AeroSystems (SPR), says the analyst, who adds that "significant incremental schedule slippage from here could still impact production later on." In addition, Boeing's plan to boost 737 production to 57 per month in 2020 is likely a relief as well, contends Seifman. The analyst, who admits he's "still stumbling in the dark a bit with regard to financial performance the next few years," keeps an Overweight rating on shares of Boeing with a price target of $430.
News For BA;SPR From the Last 2 Days
BA
Mar 28, 2024 | 06:35 EDT
Citi lowered the firm's price target on Boeing to $252 from $263 and keeps a Buy rating on the shares. The analyst says the fundamental outlook for commercial aerospace and Boeing has not changed as demand for new aircraft remains robust and there are only two major competitors that can fulfill it. While Boeing has stumbled on execution, this is not a permanent state, the analyst tells investors in a research note. Once fixed, Boeing's balance sheet repair will be the focus, as it should be, says Citi. The firm, however, sees no quick fix, and believes patience is required.