Boeing Faces Delivery Downturn, But Analyst Sees Bright Spots In Orders
Portfolio Pulse from Lekha Gupta
Stifel analyst Bert W. Subin lowered Boeing's price target to $260 from $270 but maintained a Buy rating, citing lower deliveries but highlighting strong orders and potential for future growth. Boeing delivered 83 aircraft this quarter, down from 130 year-ago, with 29 in March. Orders included 98 MAXs, 29 for 777s, and 4 for 787s. Subin expects build rate improvement and FCF growth in 2025+. BA stock has lost over 17% in the past year, impacting ETFs like ITA and PPA.
April 10, 2024 | 6:10 pm
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Boeing's price target was reduced to $260 from $270 by Stifel, despite a Buy rating, due to lower deliveries but strong orders for future growth.
The reduction in Boeing's price target reflects short-term challenges in deliveries, but the maintained Buy rating and strong orders suggest optimism for future growth. This mixed outlook leads to a neutral short-term impact on the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to Boeing, which has seen a price target reduction and lower deliveries but strong orders, through the IShares U.S. Aerospace & Defense ETF.
ITA, being an Aerospace & Defense ETF with exposure to Boeing, may see a neutral short-term impact. The ETF's performance is tied to the sector, and while Boeing faces challenges, the strong orders present a positive outlook.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Invesco Aerospace & Defense ETF, like ITA, offers exposure to Boeing, which is navigating through lower deliveries but has secured strong orders.
PPA, similar to ITA, is impacted by Boeing's performance. The short-term challenges Boeing faces are offset by strong orders, leading to a neutral impact on PPA as it reflects the broader aerospace and defense sector's potential.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70