Boeing to take flight: Street Calls of the Week
Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week: upgrades for Boeing and C3 and downgrades for Virgin Galactic and Urban Outfitters.
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What happened? On Monday, Deutsche Bank upgraded Boeing Co (NYSE:BA) to Buy with a $270 price target
What’s the full story? Deutsche’s analysts have upgraded the stock to Buy, as they see improved and sustainable performance in aircraft deliveries for the company. DB’s analysts argue that the acceleration in deliveries will lead to a positive inflection in free cash flow revisions, which will drive the stock to outperform.
Deutsche’s analysts back up their words with actions, and raise their free cash flow forecasts for the company. The analysts are now above the Street across all years of their forecast horizon that runs through 2027. For the upcoming fourth quarter, DB’s team is 49% above the Street on free cash flow ($2.6 billion versus Street $1.7 billion).
Deutsche also raised their price target from $10 to $15 for the stock, based on 10 times 2027 EV/EBITDA, which is in line with the peer average.
How did the stock react? Shares traded higher as news of the upgrade circulated. The stock jumped about 4 dollars, from a $207 handle to a $211 handle (1.50% gain). Shares opened the regular session at $211 and closed at $217.71 making for a 4.61% gain.
What happened? On Tuesday, Oppenheimer upgraded C3.ai Inc (NYSE:AI) to Outperform with a $40 price target.
What’s the full story? Oppenheimer's analysts have a positive view on C3, as they see a long-term
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