Boeing shares fall as Wells Fargo downgrades to 'underweight' on cash flow woes

Global Brokerage

03/09/2024 14:42

(Updates)
    ** Boeing shares down 6% at $163 in early trading
    ** Wells Fargo downgrades Boeing  BA.N  to "underweight"
from "equalweight", cites missed cash generation opportunity
this decade from ramping up production of current lineup
    ** Brokerage slashes PT to $119 from $185, implying a 32%
downside to stock's last close
    ** Wells expects cash flow to peak around 2027, at or below
BA's target of $10 bln, on high costs associated with aircraft
development 
    ** Brokerage sees limited upside even if BA delays new jet
development, adding in long term this would mean ceding
significant share to Airbus' new plane 
    ** 19 of 31 brokerages rate the stock "buy" or higher, 9
"hold" and 3 "sell" or lower; their median PT is $224.5
    ** Stock down 33%, this year through last close

 (Reporting by Pratyush Thakur)
 ((Pratyush.Thakur@thomsonreuters.com))