Credit Suisse raises Boeing stock rating

Credit Suisse raises Boeing stock rating

By Kristina Sobol  

Budrigannews.com – Boeing (NYSE:) was upgraded by Credit Suisse analysts. shares have been upgraded from Underperform to Neutral and the price target is $200, up from $121. Stronger aircraft deliveries indicate that enhanced operational performance is the primary driving force behind the upgrade.

The broker is now looking for an upside opportunity rather than an opportunity for estimate revisions that are downward.

“We see upside for Q4 FCF (CSe $3.0 billion versus Street $2.5 billion). Additionally, recent robust order activity contributes to the defense of out-year estimates and enhances macro resilience as a whole. Finally, “the analysts stated in a client note that China’s lifting of a ban on Australian coal imports may suggest increased policy flexibility, which may suggest a higher probability of BA regaining market access.”

The analysts gave four reasons for not double-upgrading BA stock to Outperform:

1) Valuation,

2) Supply chain risks,

3) Continued risk at BDS (Boeing Defense, Space & Security), and

4) Positioning, which appears increasingly crowded.

Boeing stock is up over 70% since the beginning of October.