Cramer: Every Objection Raised By Goldman Sachs In Their Boeing Downgrade Could Have Been Made When The Stock Was Trading At Lower Levels

Shares of Boeing Co BA opened lower today as analysts at Goldman Sachs Group Inc GS downgraded the stock from Neutral to Sell. In their note to clients, the analysts argued that they believed Boeing’s demand and free cash flow could ‘end up disappointing expectations’.

CNBC’s Jim Cramer was recently seen making a case against the Goldman Sachs downgrade.

“Everyone of these objections could have been made at [$]120, at [$]130, at [$]140, at [$]150,” Cramer said. “Jim McNerney [W. James McNerney Jr., Boeing CEO]  has said over and over again that exactly the issue that they are talking about which is the idea that oil comes down it’s going to eventually lead to a problem of demand has not come true one bit. McNerney has said ever since oil has come down he is surprised at the sheer number of orders. He has got a 10, 20 year plan. Look, the stock has spiked and I get that.”

Aren’t There Other Headwinds Apart From Oil That’ll Affect Boeing?

“Look,I understand the bear case,” Cramer replied. “It hasn’t been produced in any way, by the way one of the reasons why we didn’t like Boeing was because the defence business was bad, the defence business is being cleared up. Another, they find fault with the Dreamliner.

He continued, “The Dreamliner is really kicking in, they are starting to make more and more money. My problem with Boeing is that it went from [$]130 to mid-[$]150s off one quarter, when everybody so called, re-rated the stock and said, ‘you know what? All the problems are solved’.”