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Both United Technologies (NYSE: UTX) and Boeing (NYSE: BA) have been on massive runs since 2013, but Noah Poponak, analyst at Goldman Sachs, is beginning to favor the former.

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

DateFirmActionFromTo
Oct 2014Credit SuisseDowngradesOutperformNeutral
Oct 2014CitigroupMaintainsBuy
Sep 2014BarclaysMaintainsOverweight

View More Analyst Ratings for BA
View the Latest Analyst Ratings

Posted-In: Goldman Sachs Noah PoponakAnalyst Color Upgrades Downgrades Price Target Analyst Ratings

 

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