Boeing ( NYSE: BA ) -1.2% in early Friday trading as Benchmark cut its stock price target to $200 from $250, with analyst Josh Sullivan citing concerns about the broader economic backdrop, re-certification of 737 planes in China, and 777x development timelines.
The "multi-year water torture of internal supply side negative news from Boeing is at an inflection point," Sullivan wrote, which he said was supported by stronger than expected data on Q2 deliveries .
"Net, net broader macro issues are a concern but the structural consumer shift to services including air travel remains all while [Boeing] regains the initiative," Sullivan said.
The spotlight now turns to next week's Farnborough International Airshow in the U.K., where Boeing ( BA ) faces great pressure to secure orders , as rival Airbus ( OTCPK:EADSF ) ( OTCPK:EADSY ) has grown to the point where it has conquered nearly 70% of the narrow-body segment.
"Boeing is starting off a lower base in terms of order momentum," Jefferies analyst Sheila Kahyaoglu said, and it the company can't beat Airbus at the show, "it will continue to erode their market share."
Some of the bigger anticipated deals at the show could go in Boeing's ( BA ) favor, including a potential Delta Air Lines deal for more than 100 737 MAX jets .
For further details see:
Boeing price target cut at Benchmark on re-certification, timeline concerns