Morgan Stanley analyst Kristine Liwag maintained a Hold rating on Boeing (BA – Research Report) today and set a price target of $175.00.
Kristine Liwag’s rating is based on Boeing’s recent strategic win in securing the Next Generation Air Dominance (NGAD) Platform contract, which is a significant development for the company. This contract, intended to replace the F-22 Raptor with the F-47 in the 2030s, represents a long-term opportunity for Boeing to expand its fighter jet business. However, the financial implications of this contract are complex, as the exact unit pricing and potential cost overruns could impact Boeing’s profit margins.
Despite the promising outlook from the NGAD contract, there are concerns about the broader competitive landscape and the potential challenges Boeing might face. The decision by Northrop Grumman to not bid as a prime contractor for the NGAD suggests the possibility of strategic bidding practices leading to cost pressures. Additionally, the ongoing competition with Northrop Grumman for the Navy’s F/A-XX program adds another layer of uncertainty. These factors contribute to the Hold rating, reflecting a balanced view of Boeing’s potential risks and rewards.
In another report released on March 18, Bank of America Securities also maintained a Hold rating on the stock with a $185.00 price target.
Based on the recent corporate insider activity of 32 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.
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