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JP Morgan downgrades Boeing profit outlook, UBS maintains neutral rating – Suppliers Share Wrap

Analysis

Boeing shares fell 0.7% yesterday, amid a day of a general decline in aerospace stocks. UBS maintained its neutral rating and USD72 price target, on news Boeing is sorting the issue that grounded its B787 test fleet earlier this month. JP Morgan cut its 2011 full-year profit outlook from USD4.65 to USD4.35 per share, citing an anticipated six-month delay for the B787.

Summary
  • Boeing shares fell 0.7% amid a general decline in aerospace stocks.
  • UBS maintained a neutral rating and price target for Boeing, citing the company's efforts to resolve the issue that grounded its B787 test fleet.
  • JP Morgan reduced its 2011 full-year profit outlook for Boeing due to an anticipated six-month delay for the B787.
  • All Nippon Airways CEO expressed disappointment over the delays and urged Boeing to provide a delivery schedule for its first aircraft.
  • Other aircraft manufacturers, including United Aircraft Corp, Bombardier, EADS, and Embraer, also experienced declines in their share prices.
  • Amadeus, an aviation supplier, saw a 3.9% decrease in its share price.

All Nippon Airways CEO, Shinichiro Ito, stated yesterday that the delays to the aircraft are a "great disappointment" and is pushing Boeing to give it a schedule for delivery of its first aircraft as soon as possible.

Other aircraft manufacturers were also down, with United Aircraft Corp and Bombardier dropping 1.7% and EADS and Embraer down 1.4%.

Also losing ground was Amadeus, which fell 3.9%.

Selected Original Equipment Manufacturers daily share price movements (% change): 29-Nov-2010

Selected Aviation Suppliers & Leasing daily share price movements (% change): 29-Nov-2010

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