JPMorgan sees ‘very challenging’ path for Boeing, cuts price target

JPMorgan analyst Seth Seifman lowered the firm’s price target on Boeing to $155 from $170 and keeps a Neutral rating on the shares. Given the news that Boeing would not turn free cash flow positive for another year amid continued pressure on deliveries and plans to issue equity for retirement plans, the stock’s modest underperformance yesterday suggests that expectations are already low, Seifman tells investors in a research note. The recovery path “remains very challenging,” with customers dealing with COVID-19, suppliers struggling “with not enough to do,” and Boeing “struggling with a levered balance sheet and continued cash burn,” says the analyst.