Latest news with #Liwag
Business Insider
a day ago
- Business
- Business Insider
Morgan Stanley Weighs In on Boeing Stock Following Air India Crash
Boeing (NYSE:BA) marked a major milestone last month as the one-billionth passenger flew on its 787 Dreamliner – a big achievement for an aircraft that's only been in service for 14 years. Up until yesterday's tragic Air India crash in Ahmedabad, the 787 Dreamliner had built a strong reputation as a reliable workhorse for long-haul routes with an outstanding safety track record. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter It's important to note that this is a different aircraft from the Boeing 737 Max, which made headlines after the deadly crashes in Indonesia and Ethiopia in 2018 and 2019, claiming hundreds of lives. At this stage, there's no indication that Boeing is at fault for yesterday's incident in India. A clearer picture of what happened is expected to emerge once investigators retrieve the plane's black boxes – the onboard recorders that store critical flight data and cockpit audio. With BA shares taking a beating following the crash, Morgan Stanley analyst Kristine Liwag set out to get an idea of how investors feel about the stock right now. 'While our thoughts remain focused on those affected by the tragedy,' the 5-star analyst said, 'the feedback from investors is considerably less negative than after previous Boeing 737 MAX incidents.' On the positive side, given the strong safety history of the 787, many investors believe the stock's dip is an overreaction, especially as production of the 737 MAX continues to gain momentum. Footage of the incident appears to show a controlled descent, which could suggest that the cause may not be related to a systems failure on the aircraft itself. But the negative take is that incidents like this highlight the stock has a 'higher beta than in previous cycles,' i.e., heightened sensitivity to headlines. Boeing remains 'in the penalty box' due to prior incidents and with a range of pureplay aerospace alternatives available, many would prefer to remain on the sidelines for now. Plenty of questions remain for now. Some observers have noted that the aircraft appeared underpowered during its controlled descent. Investors are asking whether the problem could be related to the engines, maintenance or repair (MRO) issues, or possibly a bird strike. The Air India 787 is equipped with GE Aerospace engines. 'We will continue to monitor developments of the investigation,' Liwag summed up. All in, Liwag assigns an Equal-weight rating (i.e., Neutral) with a $200 price target, suggesting that the stock is fully valued at current levels. (To watch Liwag's track record, click here) While two other analysts also remain on the sidelines, they're outnumbered by 16 who are bullish on the stock. With just one dissenter issuing a Sell, the result is a Strong Buy consensus. Looking ahead, the average price target of $220.95 implies a potential upside of 10.5% over the next year. (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.
CNBC
20-05-2025
- Automotive
- CNBC
This industrial stock you likely have never heard of is a 'high-quality compounder,' says Morgan Stanley
RBC Bearings is poised for further gains as defense demand grows and ample room remains for further acquisitions, according to Morgan Stanley. Analyst Kristine Liwag reiterated her overweight rating and increased her price target on the stock by $25 to $415. That suggests more than 10% potential upside for the stock, which has already popped more than 26% this year. "Demand for RBC products remains strong across Industrials and Aerospace & Defense end markets," Liwag wrote in a note to clients. "We continue to view RBC Bearings as a high-quality industrials compounder with attractive growth and margin expansion potential." Liwag's new target comes after RBC on Friday reported mixed fiscal fourth-quarter results. The bearings and engineered components maker beat on earnings but fell short of revenue expectations, according to FactSet. RBC boasted strong growth in its aerospace and defense businesses, reporting a year-over-year net sales increase of 10.6% for the fourth quarter and 14.1% for fiscal 2025. It's seen strength in areas such as fixed-wing aircraft, missiles and guided munitions and space, according to the analysts. Liwag pointed out that RBC management expects strong demand to continue in fiscal year 2026 given expectations for aerospace to be up at least 15% and defense to be up by mid-to-high single digit percentages. Another part of Liwag's core investment thesis is that RBC has reduced its debt, and she expects it to fall even further by the end of fiscal year 2027. The acquisition of Dodge Mechanical Power Transmission unit has been "game changer" for RBC, she said, explaining that the business generates strong cash flow, which can be funneled to reduce debt. Dodge also has a recurring industrials business and better manufacturing technology from its expertise in factory automation, she said. "RBC's ongoing success is driven by multiple factors, with ongoing synergies from the Dodge acquisition being the largest contributor," Liwag wrote in the note. "Given RBC's improved leverage, we continue to see the potential for accretive M & A following its successful acquisition and integration of Dodge." Analysts polled by LSEG have an average price target on Boeing shares that indicates about 3% potential upside. Four of the seven analysts covering the stock have a strong buy or buy rating, while three share a hold rating.
Yahoo
16-04-2025
- Business
- Yahoo
Why Lockheed Martin Stock Soared While the Market Sagged Today
An analyst's bullish new note on Lockheed Martin (NYSE: LMT) and the wider U.S. defense sector provided lift to the company's stock on an otherwise bearish Wednesday trading session. Lockheed Martin's shares closed the day almost 2% higher in price, providing quite the contrast to the tumbling S&P 500's (SNPINDEX: ^GSPC) 2.2% decline. The analyst in question was Kristine Liwag of veteran white-shoe investment bank Morgan Stanley. Well before market open that day, Liwag changed her Lockheed Martin recommendation to overweight (i.e., buy) from equal weight (hold). In doing so, she added $50 per share to his price target on the storied defense stock, to $575 per share. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The pundit's new take on the company was part of a broader Morgan Stanley update on defense industry stocks. According to reports, the investment bank rates the entire sector as "attractive," as opposed to its formerly cautious view that it'll be an in-line performer. The company sees the U.S. defense budget being set at $1 trillion this year, amid growing international exports of combat goods, as a positive for these stocks. While Morgan Stanley's top pick in the sector wasn't Lockheed Martin -- that honor went to longtime rival Northrop Grumman, due to better alignment with current U.S. defense priorities -- Liwag still felt Lockheed Martin was worthy of an upgrade. She particularly highlighted its robust and active foreign sales activities as potential motors of future growth. This is indeed a fertile time for the global defense industry, with the grinding war in Ukraine, intense clashes in the Middle East, and rising geopolitical tensions elsewhere. Liwag is spot-on with her view that major defense exporters are in an excellent position just now, and Lockheed Martin is a primary example of such a company. Before you buy stock in Lockheed Martin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lockheed Martin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $526,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $687,684!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 156% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 14, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy. Why Lockheed Martin Stock Soared While the Market Sagged Today was originally published by The Motley Fool Sign in to access your portfolio
