On Thursday, Susquehanna adjusted its financial outlook on Boeing (NYSE:BA), reducing the aerospace giant's price target to $230 from the previous $265, while still holding a Positive stance on the company's stock.
The revision follows Boeing's recent conference in London, where the company shared more detailed information on its Commercial Airplanes (BCA) margins and overall free cash flow projections.
The update from Susquehanna comes after Boeing's disclosure of its financial figures, prompting the firm to revise its estimates for the years 2024 and 2025.
The reassessment was influenced by a range of factors Boeing is currently navigating, including the implementation of enhanced manufacturing and safety standards, the ongoing certification process for its 737-7 and 737-10 models, and the cycling of its fixed-price defense contracts.
Despite these hurdles and the year-to-date performance of Boeing's stock, which was affected by an incident involving Alaska Airlines, the market had already begun to price in some of the financial challenges expected for the year. Susquehanna's analysis suggests that Boeing's recovery may require additional time as it addresses these ongoing challenges.
However, Susquehanna points to Boeing's robust demand and backlog as reasons for maintaining a positive outlook. The aerospace manufacturer has sold firm orders through 2028 for its 787 and 737 programs and is currently quoting deliveries into the 2030s. This strong order book underpins Susquehanna's belief that Boeing is poised for improved performance in the future.
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