Market Overview

Expectations for Boeing Set 'Too High,' Buckingham Research Lowers PT and Estimates

Share:
Related BA
Can Jumbo Jets Survive In A Niche Market?
Boeing Posts Upbeat Q1 Earnings, But Revenue Misses Views
2 ETFs On Watch As Aerospace & Defense Scores Modest Q1 Results (Seeking Alpha)

In a report published Thursday, The Buckingham Research Group analyst Richard Safran maintained a Neutral rating on The Boeing Company (NYSE: BA) and lowered the price target from $142.00 to $132.00.

Safran commented that he remains bullish on Boeing's ability to deliver on both production rate increases and unprecedented levels of free cash flow. Buckingham Research Group reported, "While F4Q13 earnings results dampened some investor enthusiasm, we don't think the story is broken. However, we think consensus expectations are being set too high. In this note, we do a deep dive into BA's FCF potential, as we don't think the FCF story is as robust as many think."

Buckingham Research Group estimates that free cash flow is more likely to be with $11-$12 per share as opposed to investors estimates of with $15-$18 per share. The analyst lowered his 2014 and 2015 estimates from $7.55 to $7.30 and $8.35 to $7.74, respectively.

Safran concluded, "While we retain our NEUTRAL view we are becoming increasing concerned that expectations are being set too high."

Shares of Boeing closed at $129.61 on Thursday.

Latest Ratings for BA

DateFirmActionFromTo
Apr 2015CitigroupMaintainsBuy
Apr 2015CitigroupMaintainsBuy
Feb 2015Goldman SachsDowngradesNeutralSell

View More Analyst Ratings for BA
View the Latest Analyst Ratings

Posted-In: Buckingham Research Group Richard SafranAnalyst Color Price Target Analyst Ratings

 

Related Articles (BA)

Around the Web, We're Loving...

Get Benzinga's Newsletters