Goldman boosts Boeing price target to $209 on positive stabilization steps

Goldman Sachs analyst Noah Poponak raised the firm’s price target on Boeing to $209 from $189 and reiterates a Buy rating on the shares following the company’s Q1 results. The stock closed Wednesday up $8.02 to $139.00. The analyst thought the results “revealed multiple steps” toward a first phase of a stabilization, including degree of cash burn and options for additional liquidity, the 737 MAX timeline to service and the 787 production rate. Poponak continues to believe shares of Boeing “are in the zone of trough on trough, with particularly low expectations in the marketplace, creating a low hurdle to surprise positively in the immediate term as the company works toward stabilization.” Beyond that, the analyst continues to see long-term secular growth in air travel, and he believes Boeing “can make it back to a position of strong free cash flow generation.”