Boeing Co BA is poised to benefit from an inflection in global travel and an improved outlook for commercial aircraft deliveries, according to Bernstein.
The Boeing Analyst: Douglas Harned upgraded Boeing from Market Perform to Outperform and raised the price target from $252 to $279.
The Boeing Thesis: The pace of vaccination has driven air traffic in the U.S. and Europe and is starting to drive traffic in other markets like India and Japan, Harned said in the upgrade note.
“In the last two months, we have finally seen rapid acceleration in vaccine penetration in new markets,” the analyst said.
“Boeing has more company-specific issues as it works to raise 737 MAX rates, return to 787 deliveries, and address program issues in defense,” he said.
“But, at the current share price, we believe there is sufficient upside long-term to justify an Outperform rating,” Harned said.
“We believe we are finally heading to the inflection point for global travel. Is it time to party? We are not there quite yet, but the path now looks secure.”
BA Price Action: Shares of Boeing were trading 4.64% higher at $228.54 Wednesday.
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