Boeing shares slump as Wells Fargo cuts to rare bearish view
Boeing slumped on Tuesday as Wells Fargo & Co. lowered the planemaker to a sell-equivalent recommendation, saying it’s hard to see any upside in the shares. The stock fell as much as 8.9%, touching the lowest intraday level since November 2022, as analyst Matthew Akers downgraded his rating on the company to underweight from equal-weight and cut the price target to $119, the lowest among analysts tracked by Bloomberg. The move leaves Akers as one of only three analysts of the more than 30 that Bloomberg follows to recommend that investors sell the stock. The new share-price projection implies a roughly 32% decline over the next 12 months relative to Friday’s close. In a note released Tuesday, Akers said he expects free cash flow per share — Boeing’s main valuation metric — to peak by 2027 as aircraft development costs offset further production growth. Akers also said further dilution of the stock through an offering of additional shares is likely. “A substantial further equity raise is needed in the coming years, further diluting shareholders,” Akers wrote. <br/>
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Boeing shares slump as Wells Fargo cuts to rare bearish view
Boeing slumped on Tuesday as Wells Fargo & Co. lowered the planemaker to a sell-equivalent recommendation, saying it’s hard to see any upside in the shares. The stock fell as much as 8.9%, touching the lowest intraday level since November 2022, as analyst Matthew Akers downgraded his rating on the company to underweight from equal-weight and cut the price target to $119, the lowest among analysts tracked by Bloomberg. The move leaves Akers as one of only three analysts of the more than 30 that Bloomberg follows to recommend that investors sell the stock. The new share-price projection implies a roughly 32% decline over the next 12 months relative to Friday’s close. In a note released Tuesday, Akers said he expects free cash flow per share — Boeing’s main valuation metric — to peak by 2027 as aircraft development costs offset further production growth. Akers also said further dilution of the stock through an offering of additional shares is likely. “A substantial further equity raise is needed in the coming years, further diluting shareholders,” Akers wrote. <br/>
