CFRA Keeps Sell Opinion On Shares Of The Boeing Company

Our 12-month target price of $147, cut $4, reflects a 26x multiple of projected 2025 EPS, in line with BA’s long-term historical forward average. We now see a 2024 operating loss per share of $0.31 (vs. our prior EPS estimate of $0.37) and cut our 2025 EPS estimate by $0.39 to $5.65. Today, BA noted that Q2 commercial aircraft deliveries are not likely to improve on Q1 levels, which were a woeful 83 units (including just 67 of the 737 MAX, BA’s flagship product). This jibes with our view (since February) that the recovery process from the Alaska Air flight 1282 incident could stretch on for a long period of time. We remain very skeptical that BA can achieve its goal of 50 units per month of the 737 MAX by 2025/2026. We think the FAA is likely to keep close scrutiny on BA’s facility floors and the ongoing process to find a new CEO to succeed Dave Calhoun, who is departing at year end, may not necessarily yield an external candidate (something we think is necessary for a culture overhaul).

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