Boeing Rallies as Analyst Touts 'Good News' Ahead

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By Yasin Ebrahim

Investing.com – Boeing’s attempts to put the piece of its shattered reputation back together following the 737 Max crisis have suffered numerous setbacks. But as the aircraft maker is expected to enter a “period of goods news,” in the run-up to the 737 Max return to service, according to Credit Suisse (SIX:) analyst Robert Spingarn.

“While nothing material was revealed, the perspectives offered by the company … left us incrementally more constructive on the name,” Spingarn said in a note following a sitdown with Boeing’s management earlier this week.

Credit Suisse (SIX:) raised its price target on Boeing (NYSE:) to $367 from $321, sending its share more than 1% higher.

Boeing (NYSE:) is “entering into a positive news period” ahead of expectations that the return Max will get the regulatory nod to return to service by mid-year.

The grounding of the Max since March, following two fatal accidents, has cost the company billions of dollars to compensate airline customers that count the Max among their fleet.

Efforts to restore its reputation and regain trust, meanwhile, have come unstuck amid numerous setbacks including internal memos showing employees had mocked regulators and customers.

Earlier this week, Boeing (NYSE:) said it did not receive any new orders for commercial jets in January for the first time since 1962.

Boeing (NYSE:) believes the free cash flow lost from the Max grounding is largely recoverable, but if it fails to hit the mid-2020 timeline, then it will likely have to fork out further cash to its customers for the delay.

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