Seeking Alpha

Boeing now a FCF story, Deutsche Bank sees upside

  • A "natural push back" to a Buy recommendation on Boeing (BA +0.7%) "is that the stock has 'run' and it now reflects all the good news that will happen over the next several years," Deutsche's Myles Walton says.
  • However, Walton thinks BA is now a story about free cash flow rather than EPS and with FCF/ share set to hit $13, $17, and $20 in FY15, FY17, and FY20 respectively, a 10x FCF multiple "argues for solid upside" from current levels.
  • Buy rating reiterated, price target hiked to $130 from $125.
  • The note also strikes a positive tone on Airbus (EADSF.PK +0.6%).
  • More on BA's FCF generation here
Comments (2)
  • Boeing is set to fly high.
    16 Aug 2013, 01:17 PM Reply Like
  • Interesting to hear that you think it has run as far as it can, but project it will go to $130. The logic seems contradictory. In some cultures this is called speaking out of both sides of your mouth.
    16 Aug 2013, 03:11 PM Reply Like
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