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Can Boeing Shares Lift Off Soon? Credit Suisse Sees 29% Upside From Here

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Can Boeing Shares Lift Off Soon? Credit Suisse Sees 29% Upside From Here

“We are clearly late to the party,” said Credit Suisse analyst Robert Spingarn in a note while upgrading Boeing Co (NYSE: BA) from Neutral to Outperform with a price target increase from $200 to $300.

Spingarn is now one of the most bullish analysts covering Boeing (see his track record here). Baird’s Peter Arment reiterated an Outperform rating and raised his price target from $240 to $274 (see his track record here).

Shares spiked 5.6 percent on Wednesday's open following a second quarter earnings beat and raised guidance for fiscal 2017.

Spingarn sees opportunity for multiple expansion, citing shrinking cycle concerns and the company’s growing Boeing Global Services business.

The analyst has also been impressed by management’s sharp execution, having previously been skeptical of the company’s ability to meet its commitments to shareholders.

Margin expansion in the future is expected be driven by “laser-focused strategy” with regards to cost management and service opportunities.

Despite these reassurances, Spingarn left his recently updated production forecasts unchanged. Spingarn expects widebodies production to pull back to 12 787s per month and 3.5 777s per month; 737 production ought to increase to 57 per month in 2019, in line with the company’s expectations.

“We feel comfortable that the current backlog can support this rate through at least 2022,” Spingarn added.

The analyst raised his core EPS estimates through fiscal 2020 to $10 in 2017, $10.80 in 2018, $12.45 in 2019 and $14.55 in 2020.

At last check, shares of Boeing were up 3.52 percent at $241.67.

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Latest Ratings for BA

DateFirmActionFromTo
Sep 2020Morgan StanleyInitiates Coverage OnUnderweight
Jul 2020RBC CapitalMaintainsOutperform
Jul 2020Wolfe ResearchDowngradesPeer PerformUnderperform

View More Analyst Ratings for BA
View the Latest Analyst Ratings

 

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