Market Overview

Goldman Sachs Upgrades Boeing To Buy, Raises Price Target

Share:
Goldman Sachs Upgrades Boeing To Buy, Raises Price Target

Goldman Sachs has upgraded Boeing Company's (NYSE: BA) rating from neutral to buy, CNBC reported Sunday.

What Happened

The bank analysts gave the aircraft maker a new price target of $173, a premium of 82% on its last closing price of $95.01.

The Boeing stock is down nearly 71% year-till-date, and Goldman Sachs believes the shares are nearing the bottom. "Substantial fear" has been priced in, it told CNBC, and the company will recover on "the back of its strong balance sheet and a rebound in air travel demand" after the novel coronavirus (COVID-19) pandemic.

"We think Boeing will remain a going concern...travel by flight will be as popular as ever once COVID-19 is resolved," Goldman Sachs told CNBC. "We therefore think shares of [Boeing] should be procured at the current price that is down 70% YTD, 80% from 2019 [highs.]"

Why It Matters

Boeing has taken a significant impact from the coronavirus outbreak globally, with air travel coming to a near halt.

The Chicago-based company has asked the federal government for a $60 billion bailout of the airline industry.

Boeing also continues to see the impact of the extended grounding of its 737 MAX aircraft since March last year.

Benzinga PreMarket Prep co-host Dennis Dick last Wednesday warned investors against Boeing stock, stating that a government bailout is unlikely to result in a positive outcome for the aircraft maker.

"If they nationalize Boeing, it's not going to be worth $105 per share. Don't be surprised if it's worth $5 or $10 per share. I'm not joking," Dick said.

Price Action

Boeing's shares closed 2.76% lower at $95.01 on Friday. The shares dropped another 0.54% in the after-hours session at $94.50.

Latest Ratings for BA

DateFirmActionFromTo
Mar 2020Credit SuisseReiteratesNeutral
Mar 2020Argus ResearchUpgradesHoldBuy
Mar 2020BairdMaintainsNeutral

View More Analyst Ratings for BA
View the Latest Analyst Ratings

 

Related Articles (BA)

View Comments and Join the Discussion!

Posted-In: CNBC coronavirusAnalyst Color News Upgrades Price Target Analyst Ratings Media Best of Benzinga

Latest Ratings

StockFirmActionPT
PECFRAMaintains8.0
HUNCFRAUpgrades16.0
CCCFRADowngrades11.0
VOYAPiper SandlerMaintains58.0
PRUPiper SandlerMaintains64.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com