Boeing price target lowered to $207 from $222 at Bernstein

Bernstein analyst Douglas Harned lowered the firm’s price target on Boeing to $207 from $222 and keeps an Outperform rating on the shares following quarterly results. Financials reported by Boeing were less important than the messages, the firm says. It was announced that Kelly Ortberg would be CEO of Boeing, replacing Dave Calhoun on August 8th. Despite media comments about the need for an outsider, Bernstein believes that the lack of internal knowledge and personal networks will make the work even more challenging. The firm highlights the company’s deepening hole of cash, with more defense charges, rising inventories, slowing advances, but also an outlook for improving deliveries, including the 737 production ramp, 787 production recovery, 777X certification progress, and restart of deliveries to China.