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Boeing’s Free Cash Flow Target Delayed to 2027-28, Shares Downgraded by Wells Fargo

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Pooja Chauhan
Pooja Chauhan
Pooja Chauhan: Your Source for Entertainment and Box Office News Pooja Chauhan is a passionate writer and dedicated journalist specializing in delivering the latest updates and insights from the world of entertainment and box office. With a keen eye for detail and a deep love for cinema, Pooja brings her readers accurate and engaging coverage of all things related to movies, celebrities, and the dynamic world of showbiz. Her commitment to keeping her audience well-informed and entertained makes her a valuable voice in the realm of entertainment journalism. When she's not busy uncovering the latest scoops, Pooja enjoys exploring classic films and indulging in creative writing." Contact us: admin@bollywoodfever.co.in

Boeing’s free cash flow target of $10 billion is delayed to 2027-28 as Wells Fargo downgrades the stock, citing $30 billion equity raise needed to address debt before new aircraft development.

Bollywood Fever: Boeing’s ambitious goal of achieving $10 billion in annual free cash flow may face a significant delay, potentially pushing the target to 2027-28. 

Wells Fargo has downgraded Boeing’s stock to “underweight” and lowered the target price to $119, representing a 32% downside from its last closing price. This led to a more than 8% drop in Boeing’s shares, hitting a near two-year low.

Lead analyst Matthew Akers highlighted Boeing’s hefty $45 billion net debt as a primary concern, stating that the planemaker must address this financial burden before embarking on its next aircraft development cycle. Akers predicts that cutting the debt will likely consume Boeing’s cash flow through 2030.

US Boeing cautions of diminished production and delivery of 737 Max aircrafts owing to a parts-related concern
Boeing 737 Max airplanes sit parked at the company’s production facility on November 18, 2020 in Renton, Washington. David Ryder | Getty Images

The company has been struggling to recover from a crisis triggered by a mid-air accident in January, which resulted in regulatory restrictions on its 737 MAX production. 

These challenges have further pressured Boeing’s free cash flow, making the road to financial stability even steeper.

“Given a likely new aircraft launch in the next few years, Boeing will need to shore up the balance sheet sooner,” Akers noted, estimating a $30 billion equity raise will be necessary to achieve zero net debt by 2027.

Boeing responded by referencing CFO Brian West’s comments during a July earnings call, where he emphasized the company’s commitment to managing its balance sheet prudently and supplementing liquidity as needed. The company had previously outlined a target of $10 billion in annual cash flow by 2025 or 2026.

Akers also suggested that if Boeing were to delay new aircraft development for several more years and focus solely on paying down debt, its free cash flow per share could grow to approximately $20 this decade. However, this strategy could risk losing market share to rival Airbus SE in the long run.

Boeing’s stock has already seen a significant decline this year, with shares losing nearly 33.5% of their value in 2023.


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