Morgan Stanley Bets On Boeing's Prospects Despite Market Pull-Back

Morgan Stanley Bets On Boeing's Prospects Despite Market Pull-Back
  • Morgan Stanley analyst Kristine T Liwag has reiterated an Overweight rating on the shares of Boeing Co BA with a price target of $233.
  • The analyst said Boeing's stock had declined about 12% over the last week compared to the S&P 500's decline of about 6.5%.
  • Liwag views the pullback as largely beta and market-driven and not necessarily associated with any idiosyncratic factors new to the market.
  • On the demand front, the analyst sees the 737 MAX order book ex-China and MAX 10 as well supportive of increased production rates from the current rate of about 31 per month.
  • Also ReadBoeing To Pay $200M To Settle SEC Charges On Misleading About 737 MAX Safety
  • The analyst also mentioned that Boeing and the Civil Aviation Administration of China (CAAC) reportedly met to discuss the return of the 737 MAX aircraft to China.
  • The analyst sees BA's plan to remarket some of the aircraft earmarked for Chinese customers as incrementally positive.
  • The analyst lists the failure to get Boeing 737 MAX 10 certified by the end of the year could become an issue of concern for the company.
  • Price Action: BA shares are trading higher by 4.21% at $132.84 on the last check Wednesday.
  • Photo Via Company
Posted In: BriefsAnalyst ColorNewsPrice TargetReiterationAnalyst RatingsGeneral