Here’s Why Boeing Shares Are Hitting New Highs
Boeing (NYSE:BA) will release third-quarter earnings on Wednesday, which will give both investors and analysts a vantage point from which to analyze the impact lowered government spending has had on the company’s defense business and the degree to which the ongoing parade of Dreamliner malfunctions has affected its commercial business.
According to RBC Capital Markets analyst Robert Stallard, the challenge for both Boeing and rival Airbus will be to maintain the momentum that has sent shares for the two companies on a strong price run this year. In a research note obtained by Barron’s, he wrote that third-quarter results could help push shares higher, though “any upside is likely to come from internal efforts on cash and margins, versus revenues.”
Stallard also believes that the “strength in large jets is likely to remain in stark contrast with business jets, where [the firm is] expecting another weak quarter for demand in small cabin, with a steadier performance in the mid and large cabin segment.” Furthermore, the National Business Aviation Association show, which coincides with the release of the earnings report on Wednesday, could highlight “some interesting new product launches, which have historically helped stimulate demand,” he said, according to Barron’s.