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Fly News Breaks for December 20, 2019
BA, GE
Dec 20, 2019 | 07:59 EDT
Boeing (BA) represents 70%-plus of the installed base and backlog of commercial engines at GE Aviation, "by far" the most exposed of all the Electrical Equipment and Multi-Industry sector aerospace peers, JPMorgan analyst Stephen Tusa tells investors in a research note. The developments on the 737 Max are a "net negative longer term," says Tusa, noting that GE is leveraged to a "challenged platform." If the plane does not return, which is a possibility, "there is a major hole" in GE Aviation's growth and ultimately cash flow as GE "has likely taken in billions of advances here," contends Tusa. The analyst keeps an Underweight rating on General Electric shares with a $5 price target.
News For GE;BA From the Last 2 Days
GE
Mar 27, 2024 | 05:45 EDT
Wells Fargo analyst Matthew Akers raised the firm's price target on General Electric to $200 from $177 and keeps an Overweight rating on the shares. The analyst sees opportunity for GE to cut 300-500 basis points of expenses in the coming years, 2-3 times what the company committed to at its recent investor day. The firm increased estimates to incorporate higher margins. The new price target reflects a 30-times price-to-earnings multiple on aerospace and $34 per share for Vernova.
BA
Mar 26, 2024 | 13:45 EDT
Moody's placed the Baa2 senior unsecured rating and Prime-2 short-term rating of Boeing on review for downgrade. The rating outlook was previously stable. "Placing the ratings on review for downgrade follows Moody's belief that Boeing will be unable to deliver 737 narrow-body aircraft at the volumes required for it to materially expand its free cash flow and retire debt in a reasonable timeframe," the ratings agency said in a statement. The aftereffects of the door plug ejection on Alaska Airlines flight 1282 on January 6, and investments in components and parts inventory in an attempt to reduce travelled work in the production of 737s will result in about $4.5B of negative free cash flow in Q1, it points out. Moody's says Boeing's cash will fall well below $10B come March 31.
BA
Mar 26, 2024 | 13:17 EDT
Japan looks to collaborate with the private sector to develop a next-generation passenger aircraft, hoping to avoid the pitfalls that doomed Mitsubishi Heavy Industries' (MHVYF) SpaceJet by encouraging the participation of multiple companies and helping create technology standards, Nikkei's Riho Nagao reports. The project is expected to explore propulsion systems beyond jet engines that are mainstream now, including the development of hydrogen-combustion engines, the report says. Other publicly traded companies in the space include Boeing (BA) and Airbus (EADSY). Reference Link