Market Overview

UPDATE: Bank Of America Downgrades Boeing On Turbulence Ahead

Related BA
Boeing, BOC Aviation Announce Order for 22 737s
Boeing Forecasts $350B for New Airplanes in Latin America
Home Depot Surges, Most Overbought Dow Stock (Seeking Alpha)

In a report published Thursday, Bank of America analyst Ronald J. Epstein downgraded the rating on Boeing (NYSE: BA) from Buy to Neutral, and lowered the price target from $154.00 to $140.00.

In the report, Bank of America noted, “We are downgrading Boeing to Neutral from Buy as we expect the stock to be range bound in the medium term. Overall, we see limited upside for the stock as the peak in the cycle looms over the industry, while downside is limited due to near-term visibility in earnings. Concerns about seat overcapacity in the market may increase the risk for aircraft order cancellation in the outyears. See our note, Are commercial aero OEMs overbuilding aircraft? 09 May 2014. However, stable earnings growth and cash generation over the next two years are positive for the company. Additionally, taking on leverage and using the balance sheet could provide upside to our outlook.”

Boeing closed on Wednesday at $126.71.

Latest Ratings for BA

Nov 2015Standpoint ResearchDowngradesBuyHold
Sep 2015RBC CapitalMaintainsSector Perform
Aug 2015Standpoint ResearchInitiates Coverage onBuy

View More Analyst Ratings for BA
View the Latest Analyst Ratings

Posted-In: Bank of America Ronald J. EpsteinAnalyst Color Downgrades Analyst Ratings


Related Articles (BA)

View Comments and Join the Discussion!

Get Benzinga's Newsletters