Boeing (NYSE:BA) is seeing BA stock fly higher on Thursday following news of RBC analyst Michael Eisen initiating coverage of the company.
Eisen’s coverage of Boeing starts off strong with an “outperform” rating. So what has the analyst so bullish on Boeing? He believes that the company will be able to bounce back once the damage from the novel coronavirus is done.
The RBC analysts’ coverage of Boeing also comes with a price target for BA stock. Eisen’s price target is sitting at $164 per share. That’s roughly 23% higher than what the stock was trading at when markets closed on Wednesday.
Here’s what Eisen says in a section of his report on Boeing, as provided by Barron’s.
“We see a favorable Risk/Reward profile in the stock. Following the myriad of negative headlines that have plagued the stock, and investors, over the past 18 months.”
More Boeing news for the day includes CEO David Calhoun talking about bankruptcy. However, he isn’t discussing BA. Instead, he states that it’s likely a major airline will go out of business due to the problems caused by the coronavirus.
This news means Boeing may see reduced orders due to a bankruptcy filing from a major airline. It’s also worth noting that Calhoun expects the airline industry to take three to five years to recover, reports Seeking Alpha.
Keeping these factors in mind, it could be quite sometime before Eisen’s rewards reach their peak.
BA stock was up 5.2% as of Thursday afternoon but is down 60% since the start of the year.