Boeing shares downgrade on supply chain issues ‘worse than expected’
The Boeing Company faces ongoing supply chain challenges that will limit its potential for price gains from jet deliveries and create investor sentiment.
That’s from RBC analyst Ken Herbert, who on Friday downgraded his rating on Boeing
reserves equal to neutral due to “worse-than-expected supply chain constraints” [and] the short-term outlook is lower.”
The analyst keeps a price target of $225, up about 8% from Friday’s price.
Expect “inconsistent levels of production” to prevent investors from fully crediting stocks because of the predictive advantage of free cash flow in 2025, Herbert said.
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“We also see risks with accelerating 787 production, prospects in China, lingering questions about the company’s product strategy, expanding margins in the sector,” the analyst said. defense business and the speed of tourism recovery”.
Boeing reports quarterly results last week, showing an unexpected loss in part due to high costs. Boeing’s fourth-quarter free cash flow of $3.1 billion was up sharply from $494 million in the same period last year.
Shares of Boeing are up 1.6 percent over the past 12 months, compared with a roughly 7% drop for the S&P 500