Boeing

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 $164, cut $8, reflects a 24x multiple of projected 2025 EPS. The applied multiple is slightly below BA’s long-term historical forward average, but merited, in our view, by high regulatory risk. We cut our 2024 EPS estimate by $1.42 to $1.75 and 2025’s by $0.32 to $6.85. BA has delivered just 54 commercial aircraft in the first two months of Q1, a sharp slowdown from 79 units in the same period of 2023. In our view, this is reflective of the FAA-imposed slowdown on BA’s flagship 737 MAX production line, and it is too early to determine when that slowdown may end. We think BA has a long road ahead of it to restore its reputation for engineering quality, but the recent […]

Sometimes what seems to be bad news is good news. Boeing stock headed lower Tuesday morning after BofA Securities pointed out the company delivered only three 737 MAX jets in a week. That pace is well below what Wall Street expects, but going slow makes sense for the company right now. Boeing stock was off 1.5% in midday trading at $188.59 a share, while the S&P 500 and Nasdaq Composite were both up about 0.3%. One of the factors influencing shares on Tuesday is 737 MAX deliveries. BofA Securities analyst Ron Epstein, who tracks deliveries of the planes, said he had counted just 16 MAX deliveries in March through the 21st. Only three of those were delivered in the week leading up to that date. Boeing said in response to a request for comment that it would post March delivery results to its website on April 9. It didn’t address

Morgan Stanley analyst Kristine Liwag maintains Boeing with a Equal-Weight and maintains $235 price target.

Boeing’s (BA) Baa2 senior unsecured rating and Prime-2 short-term rating were placed on review for downgrade by Moody’s on Tuesday. Moody’s said it believes the company “will be unable to deliver 737 narrow-body aircraft at the volumes required for it to materially expand its free cash flow and retire debt in a reasonable timeframe.”

Morgan Stanley analyst Kristine Liwag maintains Boeing with a Equal-Weight and maintains $235 price target.

Goldman Sachs analyst Noah Poponak maintains Boeing with a Buy and lowers the price target from $268 to $257.

By Therese Poletti Troubled aviation giant needs to restore its engineering and safety reputation ‘Boeing doesn’t have an accounting problem or a cost savings problem. They have a safety and culture problem.’Corporate board analyst Matt Moscardi Boeing Co. Chief Executive David Calhoun will step down at the end of the year, a change at the top that is not going to immediately fix the issues at the troubled aerospace giant, which needs to shake up its financially driven culture and get back to its engineering roots. Boeing (BA) is now embarking on a difficult search for a new CEO – someone who can work with federal regulators, inspire employees and return the company’s once-vaunted manufacturing back to world class. Calhoun’s departure, scheduled for year’s end, doesn’t communicate enough urgency, but it could help in the search for a successor. “Announcing a change nine months in advance is useful from a

TD Cowen analyst Cai Rumohr maintains Boeing (NYSE:BA) with a Outperform and lowers the price target from $275 to $230.

All the recent problems at Boeing put CEO Dave Calhoun in the hot seat. Whether he will survive the current turmoil is one question investors need to ponder. Who should succeed him is another. Pressure on Calhoun is mounting in the aftermath of another MAX crisis. The Federal Aviation Administration capped 737 MAX production at 38 per month after the Jan. 5 in-flight emergency door plug blowout. The production slowdown, and related quality issues, will lead to another year of losses in Boeing’s commercial airplane business, Boeing CFO Brian West warned on Wednesday. “Regime change now is essential,” AeroDynamic Advisory managing director Richard Aboulafia tells Barron’s. “Customers and the FAA need [their] pound of flesh,” says Benchmark analyst Josh Sullivan, who is quick to add that doesn’t mean change is coming. Boeing didn’t respond to a request for comment about succession. Sullivan’s caveat reflects how Wall Street talks about management

Boeing CFO Brian West spoke about quality manufacturing practices, company supplier Spirit AeroSystems, and cash flow with investors at a BofA Securities conference Wednesday morning. It wasn’t clear that investors liked what they heard. Boeing shares dipped initially but then recovered as investors considered what comments meant for cash flow in 2024 and in the coming years. While Boeing stock was down about 2% in premarket trading, it rebounded early and shares closed at $187.78, up 3.7%. The S&P 500 and Nasdaq Composite rose 0.9% and 1.3%, respectively, boosted by Federal Reserve documents that show the central bank still plans to cut interest rates sometime in 2024. BofA analyst Ron Epstein led the discussion, asking questions on the minds of all investors — particularly about production quality — in the aftermath of the Jan. 5 emergency door plug blowout on a 737 MAX 9 jet operated by Alaska Air. Missing

Boeing CFO Said Made Decision To Constrain 737 Production Below 38 Per Month; Says 737 Production Constraint Is Going To Impact Revenue, Earnings And Cash Flow For Year And Quarter -BofA Securities Global Industrials Conference

Boeing believes a takeover of Spirit AeroSystems is best for safety and would fund a potential deal with cash and debt rather than stock, Chief Financial Officer Brian West told analysts at the Bank of America Global Industrials Conference. West says Boeing is committed to protecting its investment-grade debt rating. “Boeing, more than 20 years ago, probably got a little too far ahead of itself on the topic of outsourcing,” West says. “We believe, and Spirit believes, that reintegrating these two companies is what’s best for safety and for quality for the aerospace industry.” Shares fall almost 3% in premarket trading.