NEW YORK (TheStreet) --Shares of Boeing Co. are higher by 2.71% to $157.92 on strong volume in early afternoon trading on Friday, after analysts at Sterne Agee upped their price target on the aerospace company to $196 from $164 this morning. The firm said it raised its price target on Boeing based on its belief the company's free cash flow dynamic is underappreciated. So far today 4.88 million shares of Boeing have exchanged hands as compared to its average daily volume of 4.67 million shares. Exclusive Report: Jim Cramer's Best Stocks for 2015 "We estimate Boeing will generate $23 billion in free cash flow during 2015-2017, with ~$16 billion available for buybacks after dividends which would enable a 15% reduction in the shares outstanding," Sterne Agee said, according to Barron's. "We believe the healthy visibility and robust backlog will continue to make the Boeing stock a must own in 2015 among mega large-cap industrials. With the free cash flow profile remaining very favorable, we raise our free cash flow multiple objective to ~16x from 15x and roll our price target objective from 2015 to 2016 estimates," the firm added. Sterne Agee has maintained its "buy" rating on Boeing stock. Separately, TheStreet Ratings team rates BOEING CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation: "We rate BOEING CO (BA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated." Highlights from the analysis by TheStreet Ratings Team goes as follows: BA's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 2.9%. Growth in the company's revenue appears to have helped boost the earnings per share. Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year. BOEING CO has improved earnings per share by 25.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BOEING CO increased its bottom line by earning $7.40 versus $5.97 in the prior year. This year, the market expects an improvement in earnings ($8.45 versus $7.40). The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Aerospace & Defense industry average. The net income increased by 18.9% when compared to the same quarter one year prior, going from $1,233.00 million to $1,466.00 million. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Aerospace & Defense industry and the overall market, BOEING CO's return on equity significantly exceeds that of both the industry average and the S&P 500. You can view the full analysis from the report here: BA Ratings Report
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