'One of its Cleanest Quarters…': Boeing Stock (NYSE:BA) Slips Despite Gains from Bank of America

Business Insider

17 hours ago

Not long ago, we saw a whole slew of analysts come out in favor of aerospace stock Boeing (BA), despite a few problems that cropped up in the meantime. Now, another analyst has come out with good things to say about Boeing, but that proved little comfort to investors. In fact, investors sent shares down modestly in Friday afternoon's trading.
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bank of America analyst Ronald Epstein —who has a five-star rating on TipRanks—referred to the latest results as '…one of its cleanest quarters in recent years….' Epstein pointed out that Boeing managed to beat both earnings per share (EPS) and free cash flow estimates, while also offering '…a realistic view for what's ahead.'
Epstein pointed out that there were no negative adjustments at Boeing Defense, ongoing 'smooth' operations at Global Services, and improvements at Commercial Airplanes as well. About the only thing that Epstein could find wrong with Boeing to explain the recent drop in share price was a remark from Kelly Ortberg, Boeing's current CEO. While Ortberg plans to pursue a hike in the 737 Max production cap currently in place from the Federal Aviation Administration, it is not as vigorous a push as investors were likely looking for.
New 737 Max 9 Lawsuit
And then, because this is Boeing we are talking about, a new lawsuit came up. This time, it was one posed by flight attendants on the Alaska Airlines (ALK) flight that featured a door panel blowout. A group of four flight attendants staged separate lawsuits to sue for 'physical and emotional injuries.' These include 'compensation for past and future economic damages…physical and mental injuries, emotional distress and other financial costs.'
Boeing, for its part, declined to comment. Alaska Airlines also did not mention the matter when asked by Reuters. Word from the National Transportation Safety Board (NTSB) that Boeing did not provide sufficient training to prevent such an incident will likely give the flight attendants' case a little extra credibility. Though, in the end, only a court can decide.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 18 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 30.53% rally in its share price over the past year, the average BA price target of $257.21 per share implies 16.36% upside potential.