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What Are Analysts Estimating for Boeing in 2016?

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Analyst estimates

Following Boeing’s (BA) 4Q15 earnings release, analysts’ consensus estimates have been revised down slightly. For 1Q16, sales are expected to decline slightly by 0.31% at $22 billion. The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) is expected to decline by 2.3% to $2,420 million.

BA’s sales are expected to decline for 2Q15 and 3Q15 and grow by 3% in 4Q16. Its EBITDA is expected to grow through the rest of 2016.

For 2016, analysts estimate that Boeing’s sales should decline by 1.7% to $94.5 billion while its EBITDA is expected to grow by 14% to slightly more than $10.5 billion. Its EPS (earnings per share) is expected to rise by ~12% to $8.68.

Sales growth is expected to increase to 3% for both 2017 and 2018. However, the company’s growth in profitability is expected to slow going forward. For 2017 and 2018, analysts expect its EBITDA to grow by 5% while its EPS is expected to increase by 10% in 2017 and by 12% in 2018.

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Analyst recommendations

Of the 24 analysts rating Boeing’s stock, 62.5% (15 analysts) have a “buy” rating, 29.2% (seven analysts) have a “hold” rating, and 8.3% (two analysts) have a “sell” rating.

Target price

Boeing stock’s consensus 12-month target price is $151.16, which indicates a 28% return potential. Analysts’ 12-month target prices for BA’s peers are as follows:

  • United Technologies (UTX): $105.13 with 22% return potential
  • Lockheed Martin (LMT): $231.75 with 12% return potential
  • General Dynamics (GD): $160.75 with 25% return potential
  • Rockwell Collins (COL): $95.63 with 18% return potential
  • Raytheon (RTN): $138.44 with 13% return potential

Boeing (BA) forms ~6.5% of the iShares US Aerospace & Defense ETF (ITA). In the next article, we will wrap up this series by looking at BA’s valuation multiple.

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