Argus Maintains Buy Rating on Boeing Despite Near-Term Challenges
Argus, an investment firm, has chosen to maintain its Buy rating and $240 per share price target on aerospace giant Boeing. Despite recent setbacks, Argus believes that there is a significant opportunity for a turnaround in the stock.
Latest Issue with 737 MAX Jet Doesn’t Alter Boeing’s Turnaround Prospects – Argus
Boeing faced another blow to its reputation as its 737 MAX jet encountered yet another issue, resulting in US authorities grounding some 737 Max 9 planes. This led to an 8% drop in Boeing’s shares on Monday. However, Argus remains steadfast in its belief that this latest setback does not alter the prospects for Boeing’s turnaround. The investment firm acknowledges that while there are challenges ahead, both internal and external, Boeing’s leading presence in the commercial aerospace industry and its substantial backlog indicate superior long-term prospects.
Boeing’s Leading Presence in Commercial Aerospace Industry Supports Turnaround, says Argus
Argus highlights Boeing’s position as a leading player in the growing commercial aerospace industry as a key factor supporting its belief in the company’s turnaround potential. Despite the current challenges, Boeing’s strong foothold in the industry, combined with its significant backlog, sets the stage for future success. Argus also points out that Boeing’s Defense segment, which is usually profitable, further reinforces its position as a top defense contractor.
Challenges Remain for Boeing, but New CEO Making Progress on Turnaround – Argus
While Boeing faces numerous near-term challenges, both internally and externally, Argus recognizes that progress is being made under the leadership of the company’s new CEO. The appointment of a new CEO brings hope for resolving the recurring issues that have plagued Boeing, including the recent incident involving a 737 MAX jet’s fuselage. Despite these challenges, the investment firm sees value in Boeing’s shares, which are still down nearly 50% from their all-time high.
Despite Share Price Drop, Boeing Offers Value and Potential Earnings Power, Argus Notes
Argus notes that despite the significant drop in Boeing’s share price, the stock still offers value to investors. Looking ahead, the investment firm sees the potential for strong earnings power once the 737 MAX and 787 are fully back in production and delivery acceleration occurs, which they anticipate to be around 2025-2026 at the earliest. Additionally, Argus highlights the progress Boeing’s management is making in terms of cash flow growth, which they believe can positively impact the company’s valuation multiples.
In conclusion, Argus remains bullish on Boeing’s turnaround prospects, despite the near-term challenges the company faces. The investment firm reiterates its Buy rating and believes there is value in Boeing’s shares, given its leading presence in the commercial aerospace industry, significant backlog, and the potential for future earnings growth. While the recent issues with the 737 MAX jet have raised new questions, Argus sees progress being made under the guidance of the new CEO, which offers hope for a brighter future for Boeing.
Analyst comment
Positive news:
Argus maintains its Buy rating and price target on Boeing, believing there is a significant opportunity for a turnaround in the stock. Despite setbacks, Argus sees value in Boeing’s shares given its leading presence in the commercial aerospace industry, substantial backlog, and potential for future earnings growth. Progress under the new CEO offers hope for a brighter future.
As an analyst, the market is likely to react positively to Argus’ affirmation of Boeing’s turnaround prospects. Investors may see value in the stock, leading to an increase in share price. However, the market will continue to monitor Boeing’s progress and response to challenges.