UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Boeing
In a report published Wednesday, Citigroup reiterated its Buy rating on Boeing (NYSE: BA), and raised its price target from $84.00 to $106.00.
Citigroup noted, “Earnings visibility is supported by planned production rate increases on profitable aircraft (737 & 777), offset by the dilutive new platforms (787 & 747) delivering in greater #s. Improved CF visibility is due to the wind-down of new development programs, which we believe will release working capital and support positive cash flow dynamics through 2012 ($20b of FCF through 2015E). Meanwhile, in our view BA's defense business is resilient due to in-demand helo platforms, a tanker program positioned to see decades of sales, and strong international positioning. Look for late 2012 decisions on dividends & repos to act as catalysts.”
Boeing closed on Tuesday at $74.13.
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