Analysts are still a little testy with Boeing after the jet maker failed to provide a new schedule for its delayed 787 during last week’s earnings call.
This morning, Barclays Capital downgraded Boeing to “equal weight.” The investment bank also slashed Boeing’s target price to $46 from $60.
Although analysts for Barclays expect good things from the 787 when it finally its full production rate at 10 aircraft monthly, they’re concerned about the “technical challenges and additional delays.” Barclays cited Boeing’s inability to provide a new schedule or estimate the costs of the 787 delays.
From the MarketWatch story:
The financial impact of four delays in the project and “the costs of pre-production, technical fixes, penalties to airlines and supplier claims” add up to “significant, but as yet undisclosed overruns,” the analysts said in a report.
Boeing’s shares are down 1.5 percent in trading.
Also of note today, EADS says it received a follow-on order for its Airbus A330-based tanker from Saudi Arabia.
The Saudi Arabian Air Force ordered three tankers from EADS last year and now has a total of six A330 Multi-Role Tanker Transports on order.
EADS and its partner Northrop Grumman will be facing off against the Boeing Co. later this year for another tanker contract: the U.S. Air Force’s aerial refueling contest worth roughly $35 billion.
Northrop and EADS will offer an A330-based tanker. Boeing is expected to offer a tanker based on either its 767 or 777 commercial jets.
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