Sterne Agee Reiterates Buy Rating, $87 PT for Boeing

In a flash note published earlier today, Sterne Agee Group, Inc. reiterated its Buy rating and $87.00 price target for The Boeing Company

. Sterne Agee went on to say “Speculation over the impact of the 737-MAX margin dilution is overblown in our opinion as the 4Q12 decision on the 737 accounting block extension will likely fall far short of the extreme bear case. While we expect BA to exit 2012 with potentially over 1,000 737-MAX in backlog vs. only 451 today, the 737 program margins will only reflect a portion of the 737-MAX in backlog, limiting its dilution.” The Boeing Company closed yesterday at $71.85.