Boeing rises after BNP Paribas upgrades stock to outperform
BA•BNP Paribas upgrades Boeing and raises target
Boeing rose about 5% to $227.01 after BNP Paribas upgraded the stock to "outperform" from "underperform".
The brokerage raised its price target on the plane maker to $300 from $230.
It said upcoming aircraft certifications should boost cash generation and support debt reduction.
"The post-COVID era of uncertainty for BA is over. In the next year, MAX 7/10 and 777X certifications will drive inventory liquidation and operational stability," BNP Paribas analysts wrote.
The brokerage said Boeing's balance sheet will return close to pre-pandemic norms as it de-leverages.
It also said losses on its fixed-price defense contracts should ease, reducing the drag on consolidated cash flow.
BNP Paribas expects 777X research and development spending and cash burn to decline as flight testing winds down and existing aircraft inventory is delivered.
LSEG data showed 24 of 29 brokerages rate the stock "buy" or higher, with 5 rating it "hold"; the median price target is $269.50.
Up to the last close, the stock was up about 5% year to date.
