RBC Capital Cuts Boeing Price Target By 9%

RBC Capital analyst Ken Herbert lowered the price target on Boeing Co BA to $200 (39% upside) from $220 while maintaining the Outperform rating on the shares.
The analyst states that the strong June deliveries support confidence into 2H22; the focus remains on the MAX production and delivery outlook, the 787 resumptions of deliveries, and the 2022 FCF guide.
Herbert mentions that expectations around the Farnborough airshow are low, which could provide a positive catalyst.
Also Read: Airbus, Delta Explore Expanding A220 Jet Order: Reuters
The analyst continues to like the stock near-term on potential catalysts and continues to model positive 2022 FCF.
Meanwhile, Herbert lowered the price target, citing lower multiples reflecting long-term headwinds.
Herbert sees certification of the MAX-10 by December as increasingly to be at risk.
Price Action: BA shares are trading higher by 0.03% at $143.99 on the last check Thursday.
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