Boeing price target lowered to $195 from $207 at Bernstein

Bernstein analyst Douglas Harned lowered the firm’s price target on Boeing to $195 from $207 and keeps an Outperform rating on the shares. Boeing is in a “deep turnaround situation,” with issues across its major businesses, a strike underway, regulatory oversight, and pressure on capital resources, the analyst tells investors in a research note. However, Bernstein sees three potential legs up for the stock: resolution of strike and capital raise, a “compelling” recovery plan from CEO Kelly Ortberg, and successful execution of the plan. “But, now, the situation continues to worsen,” contends the firm. Bernstein says it expected an equity raise in the $10B range, which is even more likely now after Tuesday’s $25B mixed shelf registration. he lower target comes from the strike impact, more cash pressure, and a likely equity raise, partially offset by a higher market multiple.