(CercleFinance.com) – Jefferies maintains its Buy recommendation on Boeing stock with a price target of $225
The analyst notes that Boeing reaffirmed that the MAX-7 (5% of the order book) will be certified by the end of the year, while the MAX-10 (16%) will be certified in the first half of 2023.
On the order side, notes Jefferies, the Taiwanese company China Airlines is buying 16 wide-body 787s for a value of 4.6 billion dollars. Deliveries will begin in 2025. UPS has ordered an additional 8 767 freighter aircraft, bringing the total number of aircraft ordered to 108.
The analyst does not forget the purchase, by Poland, of 96 AH-64E Apache helicopters ‘ for nearly 10 billion dollars with deliveries in 2025-2026, to which is added the 3.9 billion from the sale of 29 helicopters to Australia this year’. And also to point out ‘the contract of 5 billion dollars obtained by Boeing, for land defense at mid-term’.
“We arrive at our price target of $225 based on an FCF yield of 6.7%,” continues Jefferies who notes that improving cash margins could lead to a sustainable yield of >$15/ FCF share by 2024.
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