Muted Outlook For Boeing (BA)

Oppenheimer has rated Boeing Inc (NYSE: BA) as an Underperformer with a 12 month price target of $52.00.

The company’s fortunes are tied down to sales of 787/747 and analysts at Oppenheimer believe that investors will value Boeing at a substantial discount to other peers for carrying such unique risks. Even modest problems with either the 787 or the 747 could lead to a charge of $1 Billion which could make current valuations appear stretched.

The company seems to have lost a major defense deal with the Brazilian government, however potential orders from governments of Greece and India could change the fortunes of its defense division.