Analyst Noah Poponak of Goldman Sachs maintained a Buy rating on Boeing (BA – Research Report), retaining the price target of $213.00.
Noah Poponak has given his Buy rating due to a combination of factors that mitigate the impact of trade tensions between China and the U.S. on Boeing. Despite the recent directive for Chinese airlines to halt Boeing jet deliveries, the effect on Boeing is minimal since China had already ceased orders and deliveries during the previous U.S. administration. Boeing’s backlog is largely unaffected as China constitutes only a small fraction of it, and the company has managed to deliver most of the aircraft initially intended for Chinese customers to other regions.
Furthermore, Boeing operates in a long-term growth market with significant demand for aircraft in other regions, which compensates for the reduced activity with China. The company’s ability to maintain a strong delivery skyline without relying on Chinese orders supports the Buy rating. This resilience in the face of geopolitical challenges, combined with the overall growth prospects in the aerospace industry, underpins the positive outlook for Boeing’s stock.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a $240.00 price target.
Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BA in relation to earlier this year.