Morgan Stanley analyst Kristine Liwag maintained a Hold rating on Boeing (BA – Research Report) today and set a price target of $175.00.
Kristine Liwag’s rating is based on the recent geopolitical tensions between the U.S. and China, which have led to China instructing its airlines to stop taking deliveries of Boeing aircraft. This decision is a response to the U.S. imposing significant tariffs on Chinese goods. Despite this, the impact on Boeing is expected to be minimal as deliveries to China represent a small fraction of Boeing’s total output in the coming years.
Moreover, the halt on aircraft parts purchases from U.S. companies poses a greater risk to Chinese aviation safety rather than to Boeing itself. The lack of certified alternatives for U.S. parts in China means that Chinese airlines will still need to procure these parts to maintain safety standards. Therefore, while the geopolitical situation presents challenges, the overall risk to Boeing’s operations and backlog remains limited, justifying the Hold rating.
Liwag covers the Industrials sector, focusing on stocks such as Boeing, FTAI Aviation, and Curtiss-Wright. According to TipRanks, Liwag has an average return of 11.2% and a 61.41% success rate on recommended stocks.
In another report released on April 8, Bank of America Securities also maintained a Hold rating on the stock with a $185.00 price target.