Boeing: shares continue to bounce back
(CercleFinance.com) - Boeing shares continued to bounce back on Tuesday, the day after Goldman Sachs upgraded the stock from "neutral" to "buy," with the broker saying that the US planemaker has "adequate liquidity.
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Given its current cash balance, the loan drawn in the first quarter, the remaining revolving credit facility and its dividend halt, the broker thinks Boeing has "adequate liquidity" to cover a deeply negative free cash flow year in 2020, including no MAX deliveries.
GS also thinks that air travel will remain as popular as ever once the COVID-19 crisis is over, while pointing out that the Boeing share has fallen by 70% year-to-date, and is 80% off its 2019 peaks.
After rising 11% yesterday, the stock rose almost 15% in early trading on Tuesday, clawing back some of its recent losses.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
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Given its current cash balance, the loan drawn in the first quarter, the remaining revolving credit facility and its dividend halt, the broker thinks Boeing has "adequate liquidity" to cover a deeply negative free cash flow year in 2020, including no MAX deliveries.
GS also thinks that air travel will remain as popular as ever once the COVID-19 crisis is over, while pointing out that the Boeing share has fallen by 70% year-to-date, and is 80% off its 2019 peaks.
After rising 11% yesterday, the stock rose almost 15% in early trading on Tuesday, clawing back some of its recent losses.
Copyright (c) 2020 CercleFinance.com. All rights reserved.