Industrials

Airbus stock caught an upgrade to Buy. Boeing’s recent struggles are a factor in the improved outlook. On Tuesday, RBC analyst Ken Herbert upgraded shares of Airbus to Buy from Hold. His target for the price went to EUR192 ($208) from EUR145 ($157). Airbus stock was up 2% in overseas trading at EUR166.50 a share, leaving shares up about 19% so far this year and up about 43% over the past 12 months. “We believe the recent positive shift in sentiment has room to run as recent narrowbody share gains could expand further and investor confidence in the mid-decade targets improves,” wrote Herbert. Narrow-body planes are single-aisle jets such as the A320 and 737 MAX family of aircraft. The positive sentiment shift is the one from Boeing to Airbus as Boeing struggles through more problems with its MAX jets. The Jan. 5 midair blowout of an emergency-door plug on a

There’s so much uncertainty around Boeing’s future that its stock has fallen 30% year-to-date, making it the right time to start buying up shares, UBS analysts say in a research note. That short-term shakiness can be chalked up to potential regulatory actions in response to the company’s recent woes, impacts on production of its MAX models and questions around the certification of those planes, making the stock tough to own for existing investors, the analysts say. But on a multi-year horizon, the stock still makes sense as new aircraft demand remains at record levels and supply challenges are poised to keep the market undersupplied for years to come, the analysts say.

Boeing might sell part of its defense business, Bloomberg reported Tuesday. Wall Street, and investors, will be interested in any sale. It’s too early to tell exactly what might be sold so, for now, investors should prepare and watch for what’s next. Boeing didn’t immediately respond to a request for comment about the Bloomberg report. Boeing’s defense business — which it calls Boeing Defense, Space & Security — generated about $25 billion in 2023 sales and an operating loss of about $1.8 billion. It was the second consecutive annual loss for the unit. Fixed price contracts and higher-than-expected inflation have been an issue for many defense contractors in recent years. In the five years before the pandemic, the business generated an average operating profit of about $2.3 billion a year, corresponding to a profit margin of about 9%. Wall Street expects sales to hit about $25.6 billion in 2024, up

Fitch On Boeing, Forecasts Between 420-450 737MAX Deliveries In 2024, Approximately 100 Lower Than Prior Forecasts