Goldman Picks United Technologies Over Boeing, Upgrades UTX, Downgrades BA
In a research note released Friday, Poponak said “it is currently difficult for the original equipment cycle to incrementally strengthen and investor sentiment and expectations are now fairly high.”
On the contrary, the aftermarket's “near-term trends are strengthening, with airline profits stronger than in any cycle in the past.”
Poponak said United Technologies is “well positioned in a strengthening Commercial Aerospace aftermarket,” and “the end-market stars are aligning for UTX”. The analyst upgraded the company from Neutral to Buy and raised the price target from $123 to $138.
The Goldman analyst is worried that expectations for Boeing are too high and “even small positive surprises on new orders or new production seem unlikely.” The analyst downgraded shares of Boeing from Buy to Neutral and lowered the price target from $155 to $134.
The market seems to be listening to Poponak as shares of United Technologies are up 1.27 percent to $115.21, while shares of Boeing are flat in Friday's trading.
Latest Ratings for BA
|Aug 2015||Standpoint Research||Initiates Coverage on||Buy|
|Jul 2015||JP Morgan||Initiates Coverage on||Overweight|
|May 2015||Credit Suisse||Initiates Coverage on||Neutral|
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