Oppenheimer Maintains Perform On Boeing Following 3Q14 Commercial Deliveries Update
In a research report released Monday, Oppenheimer analyst William Lee assigned a Perform rating on Boeing Company (NYSE:BA). No price target was provided.
Lee commented: “Boeing’s 3Q14 commercial deliveries were as we’d largely anticipated, but military aircraft segment came ahead of our expectations. At BCA, the mix tilted modestly in favor of the 777 program, while the 737 program slightly undershot our target; the 787 program was in line. Offsetting the upside to operating performance is a shift in timing of the R&D tax credit, which we’re now modeling to be a 4Q14 benefit instead of 2H14. Bottom line: we believe 2014 earnings will edge higher, driving upward pressure on the stock near term. But looking past this year, we continue to see challenges with the 777 order outlook, 787 deferred production, and FCF trajectory.”