Boeing shares fall for a third straight session on Monday, J.P. Morgan raises price target on the stock, maintains “Overweight” rating

J.P. Morgan raised on Monday its price target on Boeing Co (BA) from $425 to $450, as it highlighted an improved free cash flow outlook. At the same time, the bank reiterated its “Overweight” rating on the plane makers stock.

Boeing shares closed lower for a third consecutive trading session in New York on Monday. The stock went down 0.24% ($0.96) to $403.95, after touching an intraday high at $409.85, or a price level not seen since February 7th ($410.35).

Shares of Boeing Company have surged 25.26% so far in 2019 compared with an 8.10% gain for the benchmark index, S&P 500 (SPX).

In 2018, Boeing’s stock went up 9.36%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

The Wall Street bank revised up Boeings free cash flow forecast for 2020 to $16.3 billion, or $30 per share.

“Boeing is among the companies best positioned to benefit from positive aero fundamentals, and the company is consciously trying to shape the industry to capture more value for itself, which could mean strong relative performance and potential upside to estimates,” J.P. Morgan analyst Seth Seifman wrote in a client note, cited by MarketWatch.

“Finally, while sentiment has improved, we do not believe BA is over-owned,” Seifman added.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $435.00, with a high estimate of $500.00 and a low estimate of $335.00. The median estimate represents a 7.69% upside compared to the closing price of $403.95 on February 11th.

The same media also reported that 18 out of 24 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 4 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Boeing Co (BA) are presented as follows:

Central Pivot Point – $402.30
R1 – $416.49
R2 – $428.06
R3 – $442.25
R4 – $456.43

S1 – $390.73
S2 – $376.54
S3 – $364.97
S4 – $353.39