Baird Equity Research analyst Peter Arment initiated coverage on Boeing Co BA with an Outperform rating and a price target of $161.
“We believe the Free Cash Flow dynamic at BA continues to be underappreciated,” said Arment, who specifically mentioned the generation of $25 billion in FCF in 2017–2019, around $17 billion of which being available for buybacks following dividends.
In the first half of 2016, Boeing bought back $5.5 billion in stock, bringing the total to over 165 million shares since 2013 and representing a 16 percent reduction since 2012. Boeing is expected to raise its dividend in December and expand its share repurchase program, said the analyst.
The analyst also noted increasing build rates, a seven-year backlog with “record low deferral rates,” stable research and development costs and productivity improvements that contributed to cash returned to shareholders.
At last check, Boeing was slightly up on the day, trading at $134.84, a 0.13 percent increase.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.