Deutsche Bank: Boeing is Going to $12...
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Jonathan Yates
Deutsche Bank: Boeing is Going to $125.00

In a recent post on this site, it was recommended that readers consider buying Boeing (NYSE: BA) as it falls due to concerns about the recent fire on an Ethiopian Air Lines 787 “Dreamliner.”    For the long term investor, any dips in the share price of Boeing should be looked upon as a buying opportunity.

Boeing was down more than $5, almost 4.70% on Friday.  On June 10, 2013, Deutsche Bank reaffirmed its positive rating of Boeing, raising the target price of $120 to $125.  Over the next year of market action, the mean analyst target price for Boeing is $115.42.  Boeing closed Friday at $101.87.  In after hours trading, Boeing was up.

If Boeing does continue to fall, it is likely management will raise the dividend and initiate a stock buyback program.  That will greatly reward the shareholders.  Boeing has plenty of cash for such moves.  In addition, analysts have been pressuring Boeing to move some of the off its balance sheet.

Most important of all, there is very strong demand for Boeing’s products.  The pipeline is stuffed with orders: there have been orders for more than 6000 of the Next-Generation 737s alone.  The 787 is a new plane and any problems will be worked out over time.  Those shareholders loyal to Boeing will profit from those developments, both with a rising share price and increasing dividend income.


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