UPDATE: Morgan Stanley Reiterates on The Boeing Company as Buyback and Dividend Exceed Expectations

In a report published Tuesday, Morgan Stanley analyst John D. Godyn reiterated an Overweight rating on

, but removed the $150.00 price target. In the report, Morgan Stanley noted, “After the close, BA announced a $10B Share Buyback Authorization and 50% dividend increase. We previously highlighted the buyback authorization as a potential catalyst before YE and estimated this Monday for the announcement (See Friday FAQs, BA Buyback? BA Valuation Stretched? 12/13/13). We believed ~$7-8B was a reasonable estimate as it represents 2 years of buyback activity by our estimates (we model $3B in 2014 and $4.5B in 2015). BA expects to exhaust the authorization in 2-3 years, which if executed at the lower end would be significantly more bullish vs. our estimate and at the higher end would underperform our expectations. That said, given that BA has recently demonstrated ability and willingness to outpace stated guidance, we think that $10B over 2 years is a more likely scenario than the longer dated time horizon, if cycle fundamentals hold strong as we expect.” The Boeing Company closed on Monday at $134.72.