CFRA Cuts View On Shares Of The Boeing Company To Sell From Hold

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $194, down from $209, reflects a 25x multiple of projected 2025 EPS, below BA’s recent historical forward average, based on what we see as high regulatory risk. We lift our 2024 EPS estimate by $0.41 to $4.01 but cut 2025’s by $0.59 to $7.76. A Q4 operating loss per share of $0.47, vs. a loss per share of $1.75, was $0.32 better than consensus. The FAA is limiting BA, for now, to a delivery rate of 38 units per month for its flagship 737 MAX narrow-body aircraft while BA irons out process and manufacturing deficiencies. We think current consensus EPS estimates for 2024 and 2025 bake in a fairly rapid recovery in commercial aerospace deliveries, yet BA pulled forward guidance, and the Alaska Air incident may induce more caution on the production line. We see a return to profitability in Commercial Aerospace and Defense segments in 2H 2024, with only a slow uptick in volumes. BA has an opportunity to earn its way back to the FAA’s good graces, but solid execution will be key.

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