S&P Capital IQ Reiterates its BUY Rating on Boeing

October 28 00:00 2011

NEW YORK, October 28 (RainbowNewsLine.com) – Analyst Richard Tortoriello of S&P Capital IQ reiterates his BUY rating on the shares of The Boeing Company (NYSE: BA), while adjusting his estimates for the company. The target price is set to $86.

Analyst Richard Tortoriello, in a research note published yesterday, mentions that the company reported its Q3 EPS ahead of the estimates, driven by higher than expected expansion in operating margins. Boeing is approaching the “sweet spot” of rising production and reducing development costs, somewhat offset by defense pressure, the analyst says. The company, however, would struggle with compressed commercial margins on 787 & 747-8 production ramps, the analyst adds. The EPS estimate for 2011 has been raised from $4.20 to $4.40. The EPS estimate for 2012 has been reduced from $5.30 to $4.90, reflecting conservative expectations on 787 margins and pension costs.

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