Argus Ups Boeing Target Price On Positive Industry Trends

Shares of Boeing Co BA have appreciated a whopping 27 percent over the past quarter, versus a 3-percent increase in the S&P 500.

Since the turn of 2019, the industrial sector has been boosted by constructive trade talks between the U.S. and China, according to Argus.

The Analyst

Argus’ John Eade maintained a Buy rating on Boeing and raised the price target from $420 to $460.

The Thesis

The U.S. and China now seem close to a deal, which could result in the tariffs on China being lifted — provided the country pledges to better protect intellectual property rights and purchase more American goods, Eade said in a Thursday note. 

These positive trade talks have lifted the earnings multiples of the industrial sector, the analyst said. Boeing has “superior prospects” given its substantial backlog and solid footing in the growing commercial aerospace industry, he said. 

While the company is preparing for stronger and more profitable growth, the plane manufacturer continues to focus on delivering robust shareholder returns with dividend hikes and share repurchases, Eade said. 

Any pullback in Boeing’s shares due to news related to Sino-American trade or defense spending and presidential tweets will represent a buying opportunity, in Argus' view. 

Price Action

Boeing shares were down 0.89 percent at $420.72 at the time of publication Thursday. 

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