By Dhirendra Tripathi
Investing.com – Boeing stock (NYSE:BA) rose more than 4% on Wednesday as Bernstein upgraded both the stock’s rating and the price target because of attractive valuations.
Analyst Douglas Harned upgraded the stock to outperform with a target of $279, which implies a 21% gain from the stock’s current price of around $230.
According to Harned, at the current price, there is sufficient upside long-term to justify an outperform rating even it has issues to resolve. These include raising 737MAX rates, returning to 787 deliveries, and addressing program issues in defense.
In its July update, Boeing had said that the 737 program was producing at the rate of approximately 16 per month and that it expects to make it 31 per month in early 2022 with further gradual increases.
As per the same update, the 787-production rate was going to be temporarily lower than five per month to gradually return to that rate. Boeing expects to deliver fewer than half of the 787s currently in inventory this year.
Boeing’s KC-46A Pegasus program has been dogged by problems for years, and as per reports, the aerial refueling aircraft is close to getting back on the right track.
Boeing Gains as Bernstein Upgrades Citing Valuations Despite Issues
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