Schaeffer's Top Stock Picks for '25

Bearish Analysts Blast Boeing After Production Cuts

Skepticism is ramping up toward BA stock

Apr 8, 2019 at 9:46 AM
facebook X logo linkedin


Boeing Co (NYSE:BA) stock is down 4.4% at $379.26, after the aerospace giant slashed production of its 737 MAX 8 aircraft following a global grounding in reaction to a pair of deadly crashes. Specifically, BA said it will reduce output by almost 20% to 42 units per month from 52 units per month beginning in mid-April.

A round of negative analyst notes is only stoking the bearish flames, with BofA-Merrill Lynch downgrading BA stock to "neutral" from "buy," and lowering its price objective to $420 from $480. Meanwhile, Cowen and Company cut its Boeing price target to $460 from $475, anticipating a big financial penalty and free cash flow woes for the big cap.

Analysts have been slowly adjusting their outlooks on the embattled blue chip, yet the majority of the 17 brokerages in coverage continue to maintain a "buy" or better rating, with not a single "sell" on the books. Plus, the average 12-month price target of $430.48 is a healthy 10% premium to current trading levels.

Short sellers have started increasing their exposure to BA stock, too. Short interest jumped 11.7% in the two most recent reporting periods to 4.92 million shares. The bearish bandwagon is far from full, though, considering this accounts for a slight 0.9% of the equity's available float, and would take less than one day to cover, at Boeing's average daily pace of trading.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?