This is a critical step in our bullish thesis on Boeing, but it’s only the first in a series of steps in the company’s turnaround.
We are slightly reducing our fair value estimate for Boeing to $260 per share from $264 as management indicated they do not expect to return to free cash flow positivity until 2022 due to a buildup of 787 inventory.
We are slightly reducing our fair value estimate for the wide-moat company as management indicated they do not expect to return to free cash flow positivity until 2022.
We are modestly raising our fair value to $43 per share from $42.50 after adjusting our model for quarterly results. We see the stock as the best value in our U.S. airline coverage.
We lower our fair value estimate for the company as it awaits its MAX re-entry and a better environment.
We are reducing our fair value estimate to $14.50 per share from $15, and we remind investors we think that American Airlines' considerable financial leverage widens the dispersion of potential equity values relative to peer airlines.
The no-moat firm was ravaged by coronavirus in the second quarter.
We maintain United's no-moat rating and fair value estimate despite second quarter performance.
No-moat-rated Delta reported a difficult second quarter, and our fair value estimate for the stock is $42.50 per share.
Wide-moat Boeing reported a difficult first quarter as the firm weathers two concurrent challenges, but we’re maintaining our fair value estimate for the firm.
We are reducing our fair value for Southwest Airlines as we incorporate a somewhat more bearish 2020 into our forecast.
Overall, while we agree that near-term headwinds are fierce, we continue think that there are long-term tailwinds for the firm.
We are reassessing our key valuation assumptions for United, Southwest, Delta, American, and Air Canada in the wake of the coronavirus outbreak.
The wide-moat firm continues to deal with the grounding of the 737 MAX, and we're slightly lowering our fair value estimate.
We view Boeing’s updated return to service estimate of mid-2020 as reasonable, assuming no as-of-yet unknown problems are discovered.
As this change in leadership does not affect our free cash flow assumptions, we are maintaining our $349 fair value estimate.
We still believe the company’s wide moat offers structural protection, though.