Boeing’s analyst estimates

For 2017, analyst estimates are mostly in-line with Boeing’s (BA) guidance. Analysts expect the company’s 1Q17 sales to fall 3.4% to $21.9 billion, and they expect its 2Q17 sales to fall 6.5% to $23 billion.

Boeing’s sales for 3Q17 are expected to decline by -1.4% to $23.6 billion, and its 4Q17 sales are expected to grow 1.2% to $23.6 billion. This would add up to a fiscal year revenue fall of 2.3% to $92.3 billion.

Boeing’s Analyst Expectations and Recommendations: The Word on the Street

Boeing’s EBITDA (earnings before interest, tax, depreciation, and amortization), however, is expected to grow 20% in 1Q17 to $2.6 billion and grow 20% in 2Q17 to $2.6 billion. The metric is expected to grow 5% in 3Q17 to $3 billion, and for 4Q17, it’s expected to rise 11% to $2.9 billion.

For fiscal 2017, BA’s EBITDA is expected to rise 47.6% to $10.9 billion, and its EBITDA margin is expected to rise from 7.9% in 2016 to 12% in 2017.

For 2018, Boeing’s sales are again expected to rise 1.6% to $93.8 billion. Its EBITDA in 2018, however, is expected to rise by 4% to $11 billion.

Analyst recommendations

Of the 25 analysts rating the Boeing stock, 24% (six analysts) have issued a “strong buy” recommendations, while 28% (seven analysts) have issued a “buy” recommendation. But 36% (nine analysts) have issued a “hold,” and 12% (three analysts) have issued a “sell.”

Target price

The stock’s consensus-12-month target price is $169.6, which indicates a 0.3% return potential as of its closing price of $169 on January 26, 2017. Analysts’ 12-month target prices for BA’s peers are as follows:

  • United Technologies (UTX) $118.1, with a 7% return potential
  • Lockheed Martin (LMT) $280.1, with a 9.8% return potential
  • General Dynamics (GD) $195.7, with a 10.4% return potential
  • Rockwell Collins (COL) $98.4, with a 7.8% return potential
  • Raytheon (RTN) $165.9, with a 16% return potential

Notably, BA makes up 7.2% of the Aerospace & Defense ETF (PPA).

In the next and final part, we’ll examine BA’s valuation multiple.

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