Wedbush Maintains Outperform on Boeing Despite Continued 787 Issues
Wedbush Securities has published a research report on Boeing Company (NYSE: BA) after the company reported 2011 orders reflecting strength in the 777 and 737 MAX while the 787 continues with issues.
In the report, Wedbush writes, "Boeing (BA – OUTPERFORM, $88 PT) was able to [deliver] a total of just three 787s and nine 747-8s, for a total of 12 as compared to the October guidance of 15-20 (~6 787s and 12 747-8s). We continue to believe the 787 deliveries will be un-even through most of 2012, but the focus for investors is the 787 production ramp. We continue to believe that the step up to 3.5/month in April should not be an issue, but the step up to 5 expected in 4Q 12 is the primary challenge for Boeing and its supply chain. For 787 deliveries, the company attributes the delays to both customer issues and one-time items, and does not believe there are any systemic issues. If this is true, we would expect to see a gradual increase in 787 delivers in 2012, where we currently model approximately 55 787 deliveries."
Wedbush maintains its Outperform rating and $88 price target on Boeing, which is currently trading up $0.37 from yesterday's $73.53 closing price.
