- The price target of Boeing Co (NYSE: BA) has been lowered by Morgan Stanley from $181 to $165. These are the details.
The price target of Boeing Co (NYSE: BA) has been lowered by Morgan Stanley from $181 to $165. And Morgan Stanley analyst Kristine Liwag is maintaining an Underweight rating on the stock.
This price target adjustment comes at a time when Boeing announced this week that it will be shedding 7,000 more jobs in order to get through the downturn in air travel caused by the coronavirus pandemic. This week, Boeing CEO Dave Calhoun also reiterated the expectations that government regulators will soon lift the ban on the 737 Max.
For the third quarter reported this week, Boeing saw narrower-than-expected losses and higher revenue. Revenue for the company was at $14.1 billion, which is higher than the $13.8 billion that was expected. And the adjusted loss per share was $1.39 cents — which is better than the $2.38 that was expected. During the quarter, Boeing spent nearly $5 billion in operating costs, more than double the loss during the comparable 2019 quarter.
“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term,” explained Calhoun via Yahoo Finance. “Our diverse portfolio, including our government services, defense, and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic.”
Due to economic uncertainties, Boeing tapped into a loan facility, reduced costs, and suspended its dividend. Despite dealing with cancelled orders, Boeing saw a strong-than-expected durable goods order of 1.9% due to an unexpected recovery in commercial aircraft.
Today Boeing revealed it is pursuing a four-part bond deal. The order books for the transaction has reached about $12 billion, according to a regulatory filing. And Boeing may use the proceeds from the bond sales for repaying near-term debts.