Boeing (BA) is preparing for its May 21 investor meeting–and shareholders should be too. Citigroup’s Jason Gursky and Jonathan Raviv are hopeful that a positive catalyst could emerge for Boeing’s stock. They explain:
Dhiraj Singh/Bloomberg News Although the conference hasn't driven material stock out/underperformance in the last 2 years, relatively low expectations heading into next week could provide some upside as we expect BA to reiterate its targets supporting our bullish view…
The most important focus item is the deferred production build on the 787 which is targeted to peak at $25b by year-end. We suspect that consensus expects Boeing to miss by a few billion, but at this point we don't see any reason not to believe BA since they have production experience already under their belt. We'll also want to gain more clarity on how the 737 & 777 order books are shaping up to bridge to the new models in 2017 & 2020, respectively.
Shares of Boeing have dropped 1.6% to $130.92 at 3:26 p.m. today, while Embraer (ERJ) has fallen 1.3% to $33.68 and Airbus Group (EADSY) has declined 1.9% to $17.47.
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