Boeing’s stock rallies after J.P. Morgan raises price target to $450
Shares of Boeing Co. BA, -0.06% rallied 1.1% in premarket trade Monday, after J.P. Morgan raised its price target on the aerospace and defense giant, citing an improved free cash flow (FCF) outlook. The stock’s implied price gain would add about 30 points to the Dow Jones Industrial Average’s DJIA, -0.25% price; Dow futures YMH9, +0.40% were up 114 points. Analyst Seth Seifman lifted his stock price to $450, which is 11% above Friday’s closing price of $404.91, while reiterating the overweight rating he’s had since July 2017. Seifman said after he "sliced and diced" Boeing’s 10-K annual report filing with the Securities and Exchange Commission, he raised is 2020 FCF estimate to $16.3 billion, or $30 a share. "Boeing is among the companies best positioned to benefit from positive aero fundamentals, and the company is consciously trying to shape the industry to capture more value for itself, which could mean strong relative performance and potential upside to estimates," Seifman wrote in a note to clients. "Finally, while sentiment has improved, we do not believe BA is ‘over-owned.’" The stock has rallied 9.6% over the past three months, while the Dow has slipped 3.4%.
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