Bernstein Downgrades Boeing To Underperform On Worsening 787 Outlook

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Bernstein analyst Douglas Harned downgraded Boeing (BA) to Underperform from Market Perform with a price target of $199, down from $221.

The fourth quarter of 2020 was supposed to be a big quarter for 787 deliveries, as inspections for manufacturing defects were to be completed and stored aircraft delivered, Harned tells investors in a research note.

However, "this did not happen" as Boeing saw one delivery in December and none in November, says the analyst. Harned believes non-conformities related to the fuselage are more extensive than originally thought. The 787 has come under more pressure, which the market does fully appreciate, says the analyst.