Goldman Sachs said Boeing can soar more than 80% after its latest quarterly report. “We continue to believe Boeing has substantial deep value upside as financial inputs and valuation both remain at trough while long-term fundamentals are strong. Several inputs are now improving, including aircraft demand, 787 deliveries, services, and total cash flow,” wrote analyst Noah Poponak, who has a buy rating on the stock. Boeing dropped 9% Wednesday after reporting a $3.3 billion loss in its most recent quarter as challenges in its defense business held back its commercial aircraft unit. Still, the aircraft manufacturer generated nearly $3 billion in free cash flow, and said it expects it will reach positive free cash flow this year. The analyst said he expects that Boeing’s defense business will improve, and pointed to rising Max jet deliveries as positives for the company. “As Boeing drives a turnaround, quarterly updates can be mixed. But our mid-cycle free cash estimates have not moved much through this trough period; and continue to imply a lot of upside in the stock over time,” the analyst added. Goldman Sachs lowered its 12-month price target to $242 from $265. The new price target is still roughly 81% higher than Wednesday’s close at $133.79. Shares of Boeing climbed 1.6% in Thursday premarket trading. —CNBC’s Michael Bloom contributed to this report.
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