Boeing Gets The Go-Ahead To Sell To Iran; Jefferies Reiterates Buy

Jefferies reiterated its Buy rating on Boeing Co BA after it secured a license from the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Deptement to negotiate a sale of jetliners to Iran.

The license covers 80 new build jetliners, which were included in the submitted Memorandum of Agreement. The list price of the aircraft is about $17.5 billion. The potential agreement for new aircraft includes 15 B777's, 15 777X jetliners, 40 737MAX, 6 737NG's and 4 B747's.

"Given that this is a Presidential election year, there may be some political rhetoric about trade with Iran, but we see the objections as more posturing. The reality is there is substantial value in the trade deal for the American worker and for reduced tensions longer-term," analyst Howard Rubel wrote in a note.

Rubel maintained his adjusted EPS estimates for 2016 and 2017 at $6.20 and $9.65, respectively.

At time of writing, shares of Boeing rose 1.05 percent to $131.93. Rubel has a price target of $165.