Average Analyst Target-$197
Consensus Analyst Rating-Strong Buy
Boeing Stock Forecast:
According to the forecasts of 16 analysts, the average target price for The Boeing Company’s stock over the next 12 months is $197.05. The analysts have given the stock an average rating of “Strong Buy.” However, Stock Target Advisor’s own analysis of the company’s stock is bearish, meaning that it expects the stock to perform worse than the market as a whole. This analysis is based on 1 positive signal and 9 negative signals. The Boeing Company’s stock price at the last closing was $204.99, and it has increased by 8.51% over the past week, 10.75% over the past month, but decreased by 3.79% over the past year.
Analyst Coverage Change:
Boeing’s strong performance at the end of 2022 and positive outlook for the new year have led an analyst at Robert W Baird to increase his price target for the company’s stock from $210 to $250. The analyst views Boeing as a top pick for 2023. The increase in the price target was reportedly due to “blowout” deliveries in December.
Sanford Bernstein also raised the 12 month target forecast on the stock to $232 from$216 per share.
Positive Fundamentals:
One positive characteristic of this company is that it has a high market capitalization, meaning that it is one of the largest in its sector and is among the top quartile in terms of size. Companies with high market capitalization tend to be more stable.
Negative Fundamentals:
There are several negative characteristics of a company’s stock to consider:
- Poor risk-adjusted returns: The company is delivering below median risk-adjusted returns (returns adjusted for risk) compared to its peers. This means that even if the company is outperforming in terms of returns, the returns may be unpredictable.
- High volatility: The total returns for the company’s stock (the change in the stock price plus any dividends) have been volatile and above median for its sector over the past 5 years. This means that the stock may be more risky to invest in.
- Below median total returns: The company has underperformed its peers in terms of annual average total returns (the change in the stock price plus any dividends) over the past 5 years.
- Below median dividend returns: The company’s average income yield (the amount of dividends paid per share as a percentage of the stock price) over the past 5 years has been low compared to its peers. However, this may not be a problem if you are not looking for income from your investments.
- Overpriced compared to earnings: The stock is trading at a high price compared to its peers on a price-to-earnings basis, which is a measure of the price of a stock relative to its earnings per share. It is also trading above the median for its sector on this basis.
- Negative cash flow and free cash flow: The company had negative total cash flow (cash generated by the company’s operations) and free cash flow (cash flow available for distribution to shareholders) in the most recent four quarters.
- Low Earnings Growth: The company’s stock has shown below median earnings growth (an increase in profits) in the previous 5 years compared to its sector.
- Low Revenue Growth: The company’s stock has also shown below median revenue growth (an increase in sales) in the previous 5 years compared to its sector.
