© Reuters. Boeing’s Q3 results attract analyst love
- Boeing’s (BA +0.9%) Q3 results are praised by analysts a day after the company reported earnings, even though shares fell nearly 3%.
- Morgan Stanley (NYSE:MS)’s Rajeev Lalwani highlights the stock’s spectacular 66% YTD rally, saying the advance may have played a part in yesterday’s tepid market response since BA’s conference call supported the “healthy Boeing narrative.”
- BA is in an “extended execution sweet spot,” which could boost cash flow per share to $23 and higher by 2020 with beat-and-raise potential from 787 block extensions, says Cowen’s Cai von Rumohr.
- Seaport Global’s Josh Sullivan sees ample room for upside in FY 2017 and beyond with 737-MAX production ramping and the early stage of Boeing Global Services.
- Bernstein’s Douglas Harned notes that BA took an additional $256M charge on the KC-46 tanker program in Commercial Airplanes, but the segment still reported operating margins of 9.9%, which he says implies the segment otherwise delivered margins of 11.6%.
- Source: Bloomberg First Word
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