Boeing stock lacks a meaningful upside from here: CFRA Research

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on Sep 22, 2023
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  • CFRA Research analyst downgraded Boeing to "hold" on Friday.
  • Stewart Glickman sees a bunch of headwinds in the short term.
  • Boeing stock has returned to the price at which it started 2023.

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Don’t hold your breath for a swift recovery in shares of Boeing Co (NYSE: BA) that have lost more than 15% in under two months, says a CFRA Research analyst.

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Boeing stock received a downgrade on Friday

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Stewart Glickman downgraded the aerospace giant this morning to “hold” and lowered his price target to $210 that suggests about a 5.0% upside only.

He remains constructive on Boeing stock for the long term but recommends moving to the sidelines in the short term because of:

A litany of quality control issues across the aerospace industry. Should such issues persist, we think BA’s delivery schedule may suffer to some degree.

Boeing is expected to report its Q3 results about a month from now. Consensus is for it to lose $1.62 a share this quarter versus $6.18 per share a year ago.

Boeing is still struggling with manufacturing issues

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Boeing has identified manufacturing defects and warned of a delay in deliveries of its 737 Max as well as the 787 Dreamliner in recent months.

On Friday, the CFRA analyst lowered his earnings forecast as well. He now expects the multinational to earn $5.39 on a per-share basis in 2024 versus his previous call for $6.02 a share.

Boeing is committed to ramping up deliveries of its 737 aircraft to 50 planes per month by 2025 to 2026 – a guidance that Stewart Glickman finds “optimistic”.

His call on Boeing stock arrives more than a month after the New York listed firm partnered with Archer Aviation on air taxis (find out more).

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