Sterne Agee Reiterates Buy Rating, $87 PT on The Boeing Company

In a report published Wednesday, Sterne Agee Group reiterated its Buy rating and $87.00 price target on The Boeing Company BA. Sterne Agee noted, “Based on our checks, BA delivered ~62 aircraft in December. There were an estimated 11 787 deliveries in December, a record month which raises the 2012 total 787 deliveries to 46 (5 above our forecast). Total 4Q12 deliveries are estimated at 163, 5 above our estimate. While the deliveries are higher, there is no change to our 4Q12 EPS estimate given the mix of higher low-margin 787 deliveries. However, 4Q12 cash flow from operations should be robust, topping $2 billion.” The Boeing Company closed on Monday at $75.36.