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UPDATE: Bank Of America Downgrades Boeing On Turbulence Ahead

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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

DateFirmActionFromTo
Feb 2015Goldman SachsDowngradesNeutralSell
Feb 2015Stifel NicolausMaintainsBuy
Jan 2015JP MorganMaintainsOverweight

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

 

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