UPDATE: Stifel Nicolaus Resumes Hold on Boeing

Stifel Nicolaus resumes its coverage on Boeing (NYSE: BA) with a Hold rating as the company's strong backlog may be offset by required inspection on its 787 line.

Stifel Nicolaus says, "Boeing's backlog is stronger than ever and increased build rates on commercial aircraft should offset declines in a variety of defense programs. Some obstacles remain in ramping up deliveries of 787s and 747-8s, including yesterday's news that all of the first 55 787s will require inspection and, potentially, rework. Nonetheless, we believe that share price performance has a strong correlation to order rates. Given very good order performance in 2011 that may be tough to match or exceed by a material amount, we consider potential for appreciation somewhat limited at this time and therefore resume coverage with a Hold rating."

BA closed at $76.06 a share yesterday.