This post was originally published on this site
Citi analyst Charles Armitage upgraded shares of Boeing (NYSE:BA) Buy with a price target of $209.00 per share, down from the prior $219.00.
The analyst assumes that the 787 deliveries will resume shortly.
“Last year, the Chinese authorities agreed what modifications and training are required to return the 737MAX to commercial service. However, prolonged lockdowns in China have limited the demand for capacity. As restrictions are lifted, we expect the 737MAX to return to commercial service. However, we expect both 787 deliveries and 737MAX return to service will occur at some stage (just not sure when). Therefore, we see these events as incrementally positive, rather than a step change in risk,” Armitage told clients in a note.
This way, “significant” medium-term risks are resolved for Boeing. Still, the analyst prefers Airbus (OTC:EADSY) as it offers a similar degree of value, but also comes with less risk.
“We believe Airbus is materially lower risk and is our preferred global aerospace pick,” the analyst concluded.
