UBS cuts Boeing share price target by $10, citing longer 787 cash burn

Boeing (BA -1%) shares, already down 9% YTD after surging 94% last year, are slipping again today as UBS cuts its price target to $127 from $137 on the belief that problems with 787 production means cash burn will go on longer than expected.

The firm's updated learning curve analysis forecasts Boeing’s 787 cash burn at ~$6B in 2014, only slightly better than 2013, and it sees cash burn improving by ~$2B/year beyond 2014 and reaching breakeven in 2017, two years later than guidance.

CRT Capital, however, says sources expect 5-6 787 deliveries this month getting back on track to normal levels by June; while a modest impact could be felt in Q1 and possibly Q2, the firm doesn't expect any change for the full year (

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Comments (3)
  • mydogmoe
    , contributor
    Comments (1438) | Send Message
    Being that $127 is $3 more than today's closing price, does that mean UBS is recommending the stock?...
    12 Mar 2014, 05:32 PM Reply Like
  • wizjinx
    , contributor
    Comments (490) | Send Message
    I hope it does drop so I can buy more. BA = quality stock.
    12 Mar 2014, 10:38 PM Reply Like
  • Gpa Bui
    , contributor
    Comments (3) | Send Message
    I like Boeing. Good company, great products. It pays good dividend too. Good to buy for long term like Berkshire Hathaway. Best way is buying little bit at a time (dollar costs avg) to minimize risk
    19 Mar 2014, 02:51 AM Reply Like
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