Credit Suisse: Boeing Stock Price Forecast Set To $220
According to Credit Suisse, the first quarter results of Boeing (BA) will miss the market estimates. But despite this setback, the near-term outlook for Boeing looks very solid.
Based on this information, the analysts at Credit Suisse have raised the company's stock price forecast to $220. Earlier, the Credit Suisse analysts had set a price target of $200 for the company shares.
Although the forecasted stock price of Boeing was pushed higher, Credit Suisse maintained its neutral rating for Boeing.
Boeing Outflows Expected To Be $1.96 Billion
Credit Suisse added that the FCF for Q1 is expected to have a $1.96 billion outflow, which is lower than the $1.5 billion estimate of Wall Street.
However, we can't ignore the fact that a value of $1.96 billion is still much better than the $3.6 billion outflow from last year. The biggest reason why the FCF improvement was seen in the case of Boeing is the 787 inventory liquidation.
Looking ahead, Credit Suisse believes that the technical and even the fundamental outlook of Boeing (BA) is very solid, at least in the short term.
In addition, Credit Suisse also revealed that any good news related to the interest rates would also help Boeing (BA) shares tremendously in the market.
Overall, it is totally worth it to own the Boeing shares as we enter into the results. However, the news of a break in the rate hikes will likely play a key role in determining the next direction of stock market as a whole.
There's also the upcoming Paris Air Show which will be a major event for Aircraft industry companies like Boeing. And if the company manages to capture strong orders at the show, it will further improve the outlook.
To put it short, Credit Suisse is bullish on Boeing stock and has even increased its valuation of the stock.