Morgan Stanley Goes Negative on Boeing

Morgan Stanley Goes Negative on Boeing

  • Posted Tuesday, October 20, 2009 -
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The Boeing super-jumbo seems to be even further on the horizon.

Morgan Stanley has gone negative on Boeing, cutting its recommendation to underweight from equalweight. The firm has concerns that technical challenges will push the 787's first flight into 2010, and is "even more concerned first delivery could be 6 months delayed to Spring 2011." If that happens, the "787-8 may fall short of contractual guarantees, entitling airlines to remuneration."

The firm also has a laundry list of unfavorables: negative cash flow for 2010, "poor" aircraft order demand and likelihood of negative earnings revisions. Chops price target to $43 from $50. BA down 2.6% premarket to $52.05.

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