Boeing Stock Rose Because It Is Now Seen as Less Volatile After Citi Shifted Its Analyst Coverage

Boeing Stock

Boeing Stock (NYSE:BA)

On Thursday, shares of Boeing (NYSE:BA) increased by as much as 4.7% due to an analyst shift at Citi that included a changed perspective on the investment risk posed by the aircraft manufacturer Boeing stock.

An analyst at Citi named Jason Gursky initiated research coverage of the aerospace and military business by producing initiation reports on many different firms, including Boeing, Lockheed Martin, Northrop Grumman, and a few others. Previously, Charles Armitage worked as an analyst at Citi, covering the company’s stock

While maintaining Citigroup’s Buy recommendation for Boeing, Gursky removed the “high risk” classification from the rating, which resulted in the price objective for the Boeing stock increasing from $209 per share to $222 per share. Boeing and its archrival Airbus (OTCPK:EADSY) will profit as airlines strive to replace older planes with newer, more fuel-efficient ones. Boeing is the industry leader in commercial aircraft manufacturing.

Gursky noted in the study published on December 7th, “Both Airbus and Boeing have multi-year order backlogs and are continuing to experience robust demand from airlines.” “Although inflationary pressures on consumers will constrain discretionary spending and damage air traffic, there is a low probability that this would prevent airlines from setting their fleets for air traffic growth over the future decade.”

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About the author: I'm a financial journalist with more than 3 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.