2023-04-04 09:26:38 ET
Boeing ( NYSE: BA ) on Tuesday was downgraded to Sell from a prior investment rating of Neutral by analysts at Northcoast Research. They said the airplane maker isn’t likely to increase its output of commercial jets amid constraints on the global supply chain.
“After communicating with high-level industry contacts, we can now see several turbulence blips on the radar screen with darker clouds forming around the aerospace bellwether peer group,” Chris Olin, analyst at Northcoast, said in an April 4 report.
The ability of Boeing ( BA ) to increase deliveries of the 737 single-aisle jet to 38 a month this summer and for rival Airbus ( OTCPK:EADSF ) ( OTCPK:EADSY ) to make more A320 jets is being questioned by Northcoast’s industry sources. Their concerns include “jet engine output uncertainty; new asset or supplier learning curves; irrational order activity, and mixed-messaging throughout Europe,” the report said.
Northcoast cut its estimate for Boeing ( BA ) by $1.10 a share to a loss per share of -$1.74 a share for 2023. The firm also set a 12-month price target on Boeing ( BA ) of $180 a share.
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Boeing downgraded to Sell at Northcoast on supply-chain hurdles