Boeing: shares boosted by Berenberg upgrade
(CercleFinance.com) - Boeing shares have risen by up to 2% on Wednesday after Berenberg reviewed its forecasts and upgraded its rating on the stock from "sell" to "hold.
"Boeing is a deeply wounded organisation, saddled with over 60 billion dollars of gross debt, due to the 737 MAX crisis and a Covid-19-induced downturn," Berenberg analysts wrote in a note to clients.
"However, the restart of MAX deliveries in December marks a turning point towards Boeing's financial recovery, in our view," they added.
The analysts said that Boeing shares - which have fallen by 32% over the past 12 weeks - are "fairly valued" from a medium-term viewpoint, with risks balanced between recovery potential and virus uncertainty, and raised their target price from 150 dollars to 225 dollars.
Berenberg said however that it still prefers Airbus in the sector.
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