Boeing's cash flow goal to be delayed, says Wells Fargo as it downgrades stock [Yahoo! Finance Canada]
AIRBUS SE UNSP/ADR (EADSY)
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Source: Yahoo! Finance Canada
billion before developing a new aircraft, Wells Fargo said and downgraded the stock. Shares of the Dow component fell more than 7% on Tuesday after lead analyst Matthew Akers pushed Boeing to "underweight" and trimmed the target price to $119, a 32% downside to the last closing price. "Boeing carries about $45 billion net debt and (it) must address this before it kicks off the next aircraft development cycle," Akers said, adding that cutting the debt would consume its cash flow through 2030. The planemaker is working to recover from a crisis sparked by a mid-air accident in January that led to regulatory curbs on its 737 MAX production, which has pressured its free cash flow. "Given a likely new aircraft launch in the next few years, Boeing will need to shore up the balance sheet sooner," said Akers, who is rated three out of five stars for estimate accuracy on LSEG Workspace. "We estimate a roughly $30 billion equity raise to get back to zero net debt by 2027." Boeing, wh
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