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 price of $275, raised by $39, reflects a 30x multiple applied to our newly-created 2025 EPS estimate. The applied multiple is moderately above BA’s recent historical forward average, but predicated on an anticipated turnaround in supply chain woes that have weighed on BA post-Covid. We keep our 2023 operating loss estimate of $5.33, and our 2024 EPS estimate of $4.91. We also initiate a 2025 EPS estimate of $9.15. We still think BA has work to do on the supply chain front, as the recent advisory to customers to check on loose bolts would suggest. Nonetheless, we do view this as just a matter of time, and the commercial market outlook for new aircraft continues to improve, with likely tailwinds for both BA and chief rival Airbus (AIR FP EUR141 *****) through the end of the decade. Finally, we think BA’s defense outlook will improve as old fixed-price deals roll off and the rise of multiple flashpoints around the globe should spur more demand.