Morgan Stanley Bets On Boeing's Prospects Despite Market Pull-Back
Morgan Stanley analyst Kristine T Liwag has reiterated an Overweight rating on the shares of Boeing Co (NYSE: BA) with a price target of $233.
The analyst said Boeing's stock had declined about 12% over the last week compared to the S&P 500's decline of about 6.5%.
Liwag views the pullback as largely beta and market-driven and not necessarily associated with any idiosyncratic factors new to the market.
On the demand front, the analyst sees the 737 MAX order book ex-China and MAX 10 as well supportive of increased production rates from the current rate of about 31 per month.
Also Read: Boeing To Pay $200M To Settle SEC Charges On Misleading About 737 MAX Safety
The analyst also mentioned that Boeing and the Civil Aviation Administration of China (CAAC) reportedly met to discuss the return of the 737 MAX aircraft to China.
The analyst sees BA's plan to remarket some of the aircraft earmarked for Chinese customers as incrementally positive.
The analyst lists the failure to get Boeing 737 MAX 10 certified by the end of the year could become an issue of concern for the company.
Price Action: BA shares are trading higher by 4.21% at $132.84 on the last check Wednesday.
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Latest Ratings for BA
Date | Firm | Action | From | To |
|---|---|---|---|---|
Mar 2022 | Cowen & Co. | Maintains | Outperform | |
Jan 2022 | Jefferies | Maintains | Buy | |
Jan 2022 | Morgan Stanley | Maintains | Overweight |
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