Shares of Boeing (BA) are up $4.37, or 6.6%, at $71.09, after Goldman Sachs analyst Noa Poponak this morning raised his rating on the stock to “Buy” from “Neutral” with a $90 price target.
Boeing, writes Poponak, in addition to the things that are going right with the company itself, spans “nearly every positive global theme that is driving outperformance in stocks today,” including exposure to Brazil, Russia, Inida and China, the “BRIC” countries; the credit normalization trend, improving products, consumer recovery; an industry structure to Aerospace that is “favorable.”
Boeing, notes Poponak, gets 2/3 of its orders from overseas, a lot of that from developing markets.
Air traffic is growing and plane orders have “likely bottomed,” writes Poponak. The current up cycle in orders is only 1 year old, and has historically lasted three to five years, he writes. What’s more, aircraft financing has improved “dramatically.”
Catalysts for the stock include the company’s analyst day on May 20, and the Farnborough Air Show in July.
As for the products, well, suffice it to say the table of comparables in Poponak’s report compares Boeing to — Zoinks! — Apple (AAPL), suggesting Boeing’s 787 “Dreamliner” aircraft is “a game changer with huge demand that continues to make progress towards production.”
Poponak raised his EPS estimate to $5.15 per share for next year, from $4.90, which would be an increase of 32% from $3.90 this year; and to $6.20 from $5.75 for 2012.
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