Latest news with #DouglasHarned
Yahoo
21-05-2025
- Business
- Yahoo
Bernstein Maintains Outperform Rating on Boeing (BA), Lifts PT
On May 20, Bernstein lifted the price target on The Boeing Company (NYSE:BA) stock to $249 from $218 and maintained an Outperform rating. Analyst Douglas Harned raised the price target following the company's recent developments. The major move was China resuming airline delivery of Boeing planes. The analyst mentioned that Boeing has already received new widebody orders as things get better in China. The easing of trade deals between the U.S. and China also supports Boeing's presence in China. A Boeing 737 aircrafts parked in an airport terminal with passengers awaiting to board. Harned also highlighted the support for defense programs after Trump's recent deals in the Middle East. A large number of orders for Boeing jets from the Middle East add to the company's outlook. The analyst argues that there is still upside potential for BA stock. The Boeing Company (NYSE:BA), along with its subsidiaries, designs, manufactures, and sells commercial jetliners, military aircraft, and missile defense, among other offerings. The company operates through three segments, including Commercial Airplanes, Global Services, and Defense, Space & Security. While we acknowledge the potential of BA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BA and that has 100x upside potential, check out our report about this cheapest AI stock. Read Next: and . Disclosure. None. Sign in to access your portfolio
Business Insider
30-04-2025
- Business
- Business Insider
‘Load Up,' Says Douglas Harned About Boeing Stock
Back in 2023, Boeing (NYSE:BA) appeared to be well-positioned to put recent woes behind it. The company was recovering from the aftermath of the 737 MAX crashes and looked on track to generate $10 billion in free cash flow by 2025. However, that outlook changed dramatically in January 2024, when a door panel detached mid-flight from an Alaska Airlines 737 MAX 9. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. While initially thought to be an isolated incident, subsequent investigations – amid intense FAA scrutiny due to Boeing's past MAX issues – revealed deeper, systemic problems within Boeing's manufacturing processes. Other challenges included 787 production problems, certification delays for several models, and major leadership changes. Additionally, in the summer of 2024, supply chain issues hampered production of the 737 and 787, followed by a strike by the Machinists Union in September that shut down Boeing's Puget Sound operations. The strike did not come out of the blue, but nevertheless, Boeing was poorly prepared. The company's challenges were made worse by ongoing underperformance in its Defense & Space Systems (BDS) division, which recorded financial charges in every quarter of 2022, 2023, and 2024. Yet, despite the storm clouds, Bernstein analyst Douglas Harned sees a silver lining. He argues that now might actually be the perfect moment for investors to swoop in and grab Boeing shares while sentiment remains grounded. 'Boeing is now making the progress it needed for the growth trajectory we expected before the Alaska door plug accident in January 2024,' the analyst said. 'While we cannot assume all risks are gone, after high FAA scrutiny, BCA should be on a much firmer path than in 2023.' Harned continues to expect 737 MAX production will reach 38 aircraft per month by July – right in line with management's projections from the Q1 earnings call. Encouragingly, the updated guidance for the 787 exceeded his expectations, with production expected to climb to 7 per month before year-end, thanks to resolved quality and heat exchanger supply issues. As for the 737, Boeing CEO Larry Ortberg floated the possibility of ramping up to 42 per month by year-end, pending FAA cooperation. Harned, taking a more cautious view, assumes that milestone will slip to January. The analyst is also projecting steady production increases to 47, 52, and eventually 57 per month, roughly every nine months, even though Boeing's own targets are more aggressive. 'But,' Harned goes on to add, 'we prefer to be conservative, as Boeing has not done such rapid rate breaks before. All of this is against a backdrop of a duopoly with demand that should outstrip supply through the decade.' Meanwhile, after years of BDS setbacks, there were no new financial charges, marking a positive shift. More significantly, Boeing's F-47 contract win has revitalized its defense division. On the downside, there are tariffs, higher BCA costs, and lingering 787 interior issues to consider. Certification risk also remains for the MAX-7 and MAX-10, and halted China deliveries are a headwind, though the planes could be remarketed. All told, the positives outweigh the negatives, and that merits an upgrade. Harned's rating on Boeing shares goes from Market Perform (i.e., Neutral) to Outperform (i.e., Buy), while his price target also goes from $181 to $218, suggesting shares will gain ~20% over the coming months. (To watch Harned's track record, click here) Elsewhere on the Street, Boeing stock receives an additional 14 Buys, 3 Holds and 1 Sell, for a Moderate Buy consensus rating. Going by the $200.47 average price target, the shares will appreciate by 10% over the coming months. (See Boeing stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
30-03-2025
- Business
- Yahoo
Why Shares of GE Aerospace Are Down Today Despite a Lift From Wall Street
Shares of GE Aerospace (NYSE: GE) traded nearly 3% lower in the final hour of trading despite a Wall Street analyst lifting his price target on the stock. In a note published this morning, Bernstein analyst Douglas Harned maintained his outperform rating on GE and lifted his price target from $232 to $250. The stock currently trades around $200. Harned cited the company's strong positioning in the commercial aerospace aftermarket and compared GE to the French aerospace company Safran. GE and Safran successfully partner on several engine programs, but GE has a larger share of the CFM56 engine aftermarket. He also sees GE well positioned in the LEAP and widebody engine markets, which could provide future tailwinds, particularly in the widebody space, where GE generates superior margins compared to Safran. Despite the positive note, stocks fell across the board thanks to hotter-than-expected inflation data. The Dow Jones Industrial Average had fallen roughly 700 points after data this morning showed that the Personal Consumption Expenditures (PCE) Index rose 0.4% in February from the prior month, while the index came in 2.8% higher year over year. Both numbers were slightly above estimates and point to higher inflation. Meanwhile, consumer spending rose 0.4% in February, slightly less than expected. There was no specific news that led to the decline in GE Aerospace's shares today. But stocks often struggle to overcome bad macronews. While the slight miss on PCE estimates may not seem like a big deal, the combination of higher inflation and slower consumer spending increases the risk of stagflation, which is likely a worst-case scenario for the economy. Stagflation puts the Federal Reserve in a bind because if the agency raises interest rates, it could further stymie economic growth, while lowering rates could accelerate inflation further. That said, I think GE Aerospace is a fine stock to own. CEO Larry Culp has done a good job of transforming the company, which looks well positioned for growth. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $288,966!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $42,440!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $526,737!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool recommends GE Aerospace. The Motley Fool has a disclosure policy. Why Shares of GE Aerospace Are Down Today Despite a Lift From Wall Street was originally published by The Motley Fool Sign in to access your portfolio
