Wells starts Boeing at Outperform on ‘sharp’ cash flow recovery

Wells Fargo initiated coverage of Boeing (BA) with an Overweight rating and $250 price target The firm sees a “sharp” free cash flow recovery at Boeing as its production normalizes. Wells expects share upside on higher MAX and 787 production rates along with Boeing’s “large working capital opportunity.” While 777X is a large drag on free cash flow over the near term, this should “meaningfully reverse with learning curve improvement” as production rates hit 3-4 per month toward the end of the decade, the analyst tells investors in a research note.