Goldman Sachs upgraded Boeing (BA
) to in-line from underperform.
Analyst Richard Safran says that given his current view of continued orders, he revises his delivery forecast upward to 445 aircraft in 2007 and 483 in 2008 for Boeing. To reflect his revised delivery forecast, he raises $3.35 2006 EPS estimate to $3.50, $4.15 for 2007 to $4.50, and $4.50 for 2008 to $5.51.
While Safran believes orders have peaked, multiples will compress, and valuation appears expensive, he thinks earnings growth will offset multiple compression leading him to his in-line rating.