AAL

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.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.