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Tuesday, October 20, 2009
Morgan Stanley Downgrades Boeing to 'UnderWeight'
By Matt Egan
FOXBusiness
Boeing’s (BA) shares took a hit in the premarkets on Tuesday as the aerospace titan was downgraded to “underweight” by Morgan Stanley.
Pointing to more likely 787 Dreamliner delays and negative 2010 cash flow, Morgan Stanley cut Boeing from “equal weight” and lowered its price target from $50 to $43, Reuters reported.
At the same time, Morgan predicted Boeing could face downward pressure on likely poor aircraft order demand and negative earnings revisions in the future.
Shares of Boeing tumbled nearly 3% to $52.05 ahead of Monday’s open. The company’s stock is flat over the past month but has soared 46% over the past 26 weeks.
