Boeing price target raised to $300 from $280 at Deutsche Bank
Deutsche Bank analyst Myles Walton raised his price target for Boeing to $300 after CEO Dennis Muilenburg announced yesterday at a conference that the company will raise the production rate on the 787 to 14 per month in 2019 from the current 12 per month. Boeing wouldn't list the rate unless it had the visibility to maintain it for two-to-three years, Walton tells investors in a research note. The analyst sees the extra 24 planes per year adding approximately $4B in sales and $1B in cash gross margin in 2020, which he notes points to 5% positive earnings revision. Walton thinks Boeing is "knocking on the door" of $25 per share in free cash flow. The analyst raised his estimates and reiterates a Buy rating on the shares.