Cowen downgrades Boeing to Market Perform on extended MAX 'crisis' - InvestingChannel

Cowen downgrades Boeing to Market Perform on extended MAX ‘crisis’

Cowen analyst Cai von Rumohr downgraded Boeing to Market Perform from Outperform with a price target of $371, down from $419. While Dave Calhoun is good choice to lead the company, additional costs from the MAX production suspension and certification delays will hold Boeing’s free cash flow to $15 per share in 2020 and $26 in 2021 with a “flattish” 2022, von Rumohr tells investors in a research note. Further, once 737 MAX deliveries resume, Boeing is apt to choose a more moderate production ramp than its prior year-end 2020 target of 57 per month to assure liquidating MAX inventory in a timely manner, adds the analyst. von Rumohr cites the extended MAX “crisis” for the downgrade to Market Perform.