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Thread: RBC Raises Boeing's Price Target, Says Sharp FCF Inflection On The Horizon

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    Default RBC Raises Boeing's Price Target, Says Sharp FCF Inflection On The Horizon

    .

    Despite a downturn in production rates, the liquidation of Boeing Co’s (NYSE: BA) 737 and 787 aircrafts and the company’s large defense wins should significantly boost free cash flows beyond the first quarter of 2021, according to RBC Capital Markets.

    The Boeing Analyst: Michael Eisen maintained an Outperform rating for Boeing, while raising the price target from $164 to $194.


    The Boeing Thesis: Boeing’s near-term cash burn is likely to be substantially higher than was previously anticipated, Eisen said in the note.

    He added, however, that management discussions with customers give hope that airlines have the ability and willingness to take deliveries of new planes, “with a long list of customers ready to step in to pick up aircraft left unclaimed by cancellations or deferrals.”

    See Also: How Does Boeing's Debt Look Like?

    Referring to further reduction in the production of 737, 777, and 787 as well as the winding down of the 747 program, the analyst pointed out that these were “largely expected.” He added that Boeing is taking steps to realign and reevaluate how it operates, which has the potential to structurally improve its underlying operations.

    Boeing’s inventory has increased to $84 billion due to the surplus of completed 737 aircrafts and a higher number of completed 787s. The liquidation of the completed aircrafts from both programs represents “the key driver for an inflection” in the company’s free cash flows, Eisen said.


    https://finance.yahoo.com/news/rbc-r...164009524.html

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    Where's Hawkeye when you need him?
    Last edited by cancel2 2022; 08-01-2020 at 07:11 AM.

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    Quote Originally Posted by Grajonca View Post
    Where's Hawkeye when you need him?
    Nowhere to be seen evidently.

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    Boeing Analyst: Crisis Of Confidence In Plane Manufacturer Justified

    Investor questions around Boeing Co’s (NYSE: BA) guidance for the rest of 2020 and into 2021 and 2022 indicate a lack of conviction in the company's commentary, according to BofA Securities.

    The Boeing Analyst: Ronald Epstein maintained a Neutral rating on Boeing and reduced the price target from $195 to $175.

    The Boeing Thesis: Boeing has historically lagged the industry in announcing its plans to navigate challenges in the macro environment, Epstein said in a Friday note. (See his track record here.)

    Boeing seemed “obsessively focused” on cost reduction and cash flow generation during its second-quarter earnings call, and there is lack of clarity regarding how the company plans to meet the challenges of "the most severe downturn in commercial aviation history," the analyst said.

    “In our view, the emerging crisis in investor confidence is justified,” he said.

    while emphasizing that focusing on cost-cutting and cash flow generation will not work in today's environment.

    Boeing needs to focus on “ensuring safety through a return to engineering excellence and investing for the future of commercial aerospace,” Epstein said.

    The company has essentially become “a show-me story,” and investors are looking at management and the board to prove that they have what it takes to “successfully navigate the turbulence in commercial aviation,” according to BofA.
    https://finance.yahoo.com/news/boein...161338756.html
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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    Quote Originally Posted by Grajonca View Post
    Where's Hawkeye when you need him?
    I am watching A French Lieutenants Woman.

    Boeing is such a disaster especially for Washington....this on top of the crash of Seattle is really going to suck...Boeing is quickly leaving Washington.

    https://theaircurrent.com/industry-s...outh-carolina/

    You cant expect me to be happy with Boeing.... especially with me having trained as an engineer.... to watch Boeing fuck up by taking their eye off of the engineering ball, and the safety ball, and the innovation ball.....it is so sad how even Boeing gravitates towards crap work now.

    SpaceX beats them on NASA crew launch?

    FUCK ME
    Last edited by Hawkeye10; 08-03-2020 at 03:16 AM.
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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    Confluence of crises leaves Boeing ‘a very stricken company,’ says major airline’s president

    For Boeing, the worldwide downturn couldn’t come at a worse time, said Tim Clark, president of giant Gulf airline Emirates and a key Boeing customer.

    “The MAX was probably the single biggest problem in Boeing’s history, until the pandemic came along,” said Clark, in a phone interview from Dubai. “Add the two together and you have a very stricken company.”
    https://www.seattletimes.com/busines...ies-into-2022/
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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    The Survival of Boeing Is No Longer a Guarantee

    By the end of 2019, Boeing had already reported a staggering $20.298 billion in long-term debt. This is because the 737 MAX crisis was a significant drain on cash flow for the year. Some predict the situation will get even worse in 2020 with Berenburg analyst Andrew Gollan expecting net debt to hit $31 billion by the third quarter.

    This high debt load is problematic because Boeing will have a hard time funding its CAPEX while also returning value to shareholders through its dividend. The dividend is currently suspended and probably won’t come back. But the bigger problem will come from CAPEX, which is a driver of future growth.

    Costs for the 737 MAX fiasco are estimated to top $18.7 billion. This is money that could have gone toward developing other programs.

    Boeing has some major competition on the horizon, not just from its traditional rival Airbus, but from new competitors, including Chinese COMAC and Japan’s Mitsubishi. These companies will take advantage of Boeing’s weakness to expand their footprints in commercial aviation.
    https://www.ccn.com/the-survival-of-...r-a-guarantee/
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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    I Honestly Don’t Trust Many People at Boeing’: A Broken Culture Exposed
    A trove of internal employee communications shows that the aviation giant’s troubles go beyond one poorly designed plane.


    “We’ve all seen this movie before, in places like Enron,” Chesley B. Sullenberger III, the pilot who safely landed a plane on the Hudson River in 2009, said in an interview. “It’s not surprising that before a crisis, there are indications of real deep problems that have their roots in leadership.”

    Sara Nelson, the president of the Association of Flight Attendants union, said the messages revealed a “sick” culture at Boeing, noting that “the trust level was already in the toilet.”
    https://www.nytimes.com/2020/01/10/b...%20engineering.
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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    Quote Originally Posted by Hawkeye10 View Post
    Confluence of crises leaves Boeing ‘a very stricken company,’ says major airline’s president


    https://www.seattletimes.com/busines...ies-into-2022/
    The US government is not going to allow Boeing to go down the crapper, it's just not going to happen.

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    Quote Originally Posted by Grajonca View Post
    The US government is not going to allow Boeing to go down the crapper, it's just not going to happen.
    You might want to look:
    Boeing stock price analysis: getting ready to drop
    https://capital.com/boeing-stock-pri...lysis-august-4



    Or Not
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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    Quote Originally Posted by Hawkeye10 View Post
    If Boeing goes down then many of the world's airlines would go with it. Not forgetting much of the tourist industry with it.
    Last edited by cancel2 2022; 08-05-2020 at 01:16 AM.

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    Quote Originally Posted by Grajonca View Post
    If Being goes down then many of the world's airlines would go with it. Not forgetting much of the tourist industry with it.
    I dont know that Boeing is going down into bankruptcy (though they very well might), but I do know that it is going down from where they were before the 737MAX launched, likely way down, for a lot of reasons. The 737MAX is a complete disaster that not only is wrecking the company financially but it finished the job of wrecking the reputation of Boeing that had been built over so many decades. They sucked with their program that proceeded it too....the 787 program is struggling to break even over the lifetime of the program...and this is Boeing, which sacrificed everything chasing profits.....NOT a good look.

    The reality is that Boeing is not very good at designing or building airplanes anymore....which is a huge motherfucking problem.

    They suck at their NASA work too.



    https://seekingalpha.com/article/432...er-strong-year
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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    Quote Originally Posted by Hawkeye10 View Post
    I dont know that Boeing is going down into bankruptcy (though they very well might), but I do know that it is going down from where they were before the 737MAX launched, likely way down, for a lot of reasons. The 737MAX is a complete disaster that not only is wrecking the company financially but it finished the job of wrecking the reputation of Boeing that had been built over so many decades. They sucked with their program that proceeded it too....the 787 program is struggling to break even over the lifetime of the program...and this is Boeing, which sacrificed everything chasing profits.....NOT a good look.

    The reality is that Boeing is not very good at designing or building airplanes anymore....which is a huge motherfucking problem.

    They suck at their NASA work too.



    https://seekingalpha.com/article/432...er-strong-year
    Ok I'm done here, time will tell who is right.

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    I knew that Boeing was in deep trouble years ago....... my daughter graduated WSU Pullman Business School 2011 and Boeing recruits hard out of WSU(or did, they are cutting a lot in Washington).....by 2017 every single person that she personally knew who had gone to Boeing, from 2-3 year groups, had left Boeing .......generally claiming that the company was a mess that they wanted no part of.

    We started talking about it in 2015 when she noticed the exodus.
    This illegal illegitimate regime that runs America is at fault...not me.... they do not represent me and I have long objected to their crimes against humanity.

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