Boeing Has Bullish Recommendations from Most Analysts



Bullish stance

The Boeing Company (BA) has received a consensus “buy” recommendation from Wall Street analysts polled by Reuters. Nearly 75% of the analysts covering BA have provided bullish recommendations on the stock.

Of the 24 analysts covering BA, seven have given it “strong buy” recommendations, while 11 have given it “buy” recommendations. The remaining six analysts have given it “hold” recommendations. Analysts’ consensus target price of $440.00 represents a potential rise of 5.3% from its current price of $417.97. Its current target price is 5.8% higher than its target price of $415.71 the day before its earnings release.

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Boeing has seen upward revisions to estimates for its 2019 and 2020 EPS since it reported its fourth-quarter earnings results on January 30. The mean estimate for its 2019 EPS has risen to $20.20 compared to the estimate of $18.31 on January 29. Its 2020 EPS estimate has improved to $23.30 from $21.45.

JPMorgan raised its target price

Boeing has recently received glowing remarks from JPMorgan Chase (JPM) analyst Seth Seifman. Citing an improved 2020 outlook for FCF (free cash flow), the analyst reiterated his “overweight” rating on the stock and raised its target price by $25 to $450 as of February 10.

Seifman believes that the company will have an FCF of $16.3 billion, or $30 per share, in 2020. He thinks that the aircraft manufacturer is well positioned to benefit from positive aerospace fundamentals.

Seifman’s new target price of $450 on Boeing stock signifies a potential upside of 7.7% from its closing price of $417.97 on February 15. This target price is much higher than the consensus target price of $440 determined by Reuters.

Peers’ ratings

The majority of industrial (XLI) stocks have received bullish recommendations from Wall Street analysts. Lockheed Martin (LMT), General Dynamics (GD), and Northrop Grumman (NOC) have all received mostly “buy” recommendations. Their one-year target prices of $334.83, $204.8, and $318.68, respectively, represent potential returns of 9%, 16.9%, and 11.1%, respectively.


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