Boeing Stock Forecast-STA Research Downgrades on Valuation

Boeing Stock Forecast

Boeing Stock Forecast (BA:NYE):

STA Research today downgraded Boeing stock forecast to a Hold rating from a Buy, after the stock had a recent surge to $184 from its bottom in October at $121.

STA Research raised the Boeing stock price target to $170 from $145, as they expect the stock to consolidate after the bullish run.

Detailed Analysis (BA:NYE)

 

The Boeing Company Stock Analysis:

According to Boeing stock forecast from 15 analysts, the company’s average 12-month analyst target price is USD 192.66. The consensus analyst rating is set at a Strong Buy recommendation.

The Boeing Company’s stock analysis by Stock Target Advisor is Bearish and is based on 1 positive and 8 negative signals. Boeing stock price was USD 175.78 at the most recent closing.

The stock price of The Boeing Company changed by +0.53% over the previous week, +22.60% over the previous month, and -6.59% from a year earlier.  The average Crowd Target is $190, with a Crowd Rating of a Buy.

 

About Boeing Company:

The Boeing Company creates, develops, produces, sells, services, and maintains commercial and military jetliners, satellites, missile defence, launch systems for human spaceflight, and other products and services globally.

Commercial Airplanes, Defense, Space & Security, Global Services, and Boeing Capital are the company’s four business segments. The Commercial Airplanes section provides fleet support services and commercial jet aircraft for passenger and freight needs.

The Defense, Space & Security segment works on manned and unmanned military aircraft, weapons systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and strategic defence and intelligence systems.

It also develops, produces, and modifies government and commercial satellite systems. Supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, data analytics, and digital services are all provided to both commercial and defense customers by the Global Services segment.

For a portfolio of equipment under operational leases, sales-type/finance leases, notes and other receivables, assets held for sale or re-lease, and investments, the Boeing Capital business provides financing services and manages financing exposure. The business is headquartered in Chicago, Illinois, and it was founded in 1916.

 

Boeing Stock Forecast-News:

United Airlines and Boeing Co. are nearing an agreement for a significant 787 Dreamliner order. United Airlines was considering offers from Boeing and the Airbus’s A350, and now the company is leaning towards placing an order for more than 100 widebody aircraft from Boeing.

After experiencing production issues since May 2021, Boeing delivered its first 787 in August. After approving Boeing’s inspection and modification plan required to achieve certification standards in July, the Federal Aviation Administration opened the way for deliveries to restart. Widebody jet demand is increasing, according to reports from Boeing and Airbus.

The American government is considering one of two proposals from Boeing to exempt the company’s 737 Max 7 and Max 10 from the year-end regulatory change, and could be included in a US defence spending bill that the government representatives  are looking to finalise before the year comes to a end.

 

Fundamental Analysis:

Positive Fundamentals:

High market capitalization:

This organization is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.

 

Negative Fundamentals:

Subpar risk-adjusted returns:
In comparison to its rivals, this company’s risk-adjusted return performance is below average. The returns are unpredictable, even if it is outperforming in terms of returns. Be careful as you go.

High volatility:
Boeing stock forecast shows that this company’s total returns have been erratic and higher than the industry average over the past five years. If you plan to invest in such a stock, be sure your risk tolerance is adequate.

Lower than average dividend returns:
In comparison to its competitors, the company’s average income yield during the past five years has been low. If you are not seeking for work, it is not an issue.

Expensive in comparison to earnings:
Boeing stock price is trading above the sector median and at a premium to its peers in terms of price to earnings.

Poor cash flow:
Boeing stock forecast shows that the last four quarters saw a negative total cash flow for the organization.

Negative free cash flow :
In the last four quarters, the company’s overall free cash flow was negative.

Low growth in earnings:
Compared to its sector, this stock’s five-year median earnings growth was lower than average.

Low Growth in Revenue:
Compared to its sector, this stock’s five-year median revenue growth was lower than average.

 

Conclusion:

 The fundamental analysis for Boeing stock forecast is currently set with a score of 1.1 out of 10, which means the fundamentals of the stock are very negative, which could affect the company’s stock.

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