Boeing price target raised to $235 from $230 at Stifel

Stifel raised the firm’s price target on Boeing to $235 from $230 and keeps a Buy rating on the shares. Boeing reported Q2 adjusted EPS of ($2.90), below consensus estimates of ($1.90) while free cash flow of ($4.3B) was in line with expectations. Lower-than-expected earnings were a function of lower deliveries in BCA and substantial incremental charges on fixed-price development contracts in BDS. The OEM’s most notable announcement, however, is the hiring of former Rockwell Collins CEO and now former RTX board member, Kelly Ortberg, as CEO, Stifel says. The firm was not very surprised with the decision given he was one of three on the short list of candidates, and believes hiring someone outside the Boeing circle could help spur cultural change. Ortberg joining is a major milestone, in Stifel’s view, as it could usher in the next chapter for Boeing, a chapter where demand is extremely strong, and supply may be on track to start recovering.