Boeing downgraded to Underweight from Equal Weight at Wells Fargo

Wells Fargo analyst Matthew Akers downgraded Boeing to Underweight from Equal Weight with a price target of $119, down from $185. The analyst sees the company’s free cash flow peaking by 2027 as aircraft development costs offset further production growth, and says an equity raise likely further dilutes the shares. Boeing had a generational free cash flow opportunity this decade, driven by ramping production on mature aircraft and low investment need, the analyst tells investors in a research note. However, after extensive delays and added cost, Wells now sees growing production cash flow running into a new aircraft investment cycle, capping free cash flow a few years out, the firm adds. Boeing carries $45B net debt on its balance sheet, and paying this down would consume all of its cash through 2030, according to Wells.