Another day, another Wall Street update on (NYSE: BA) and another Boeing airplane incident. The latter concerns an engine cowling falling off a Boeing plane on a Southwest Airlines flight on Sunday. Consequently, the Federal Aviation Administration (FAA) will investigate the event.

The analyst update can be interpreted in two ways. A Sanford Bernstein analyst cut the price target on the stock by a whopping $32 to $240 in recognition of the company's headwinds. On the one hand, this is a net negative on the price target. On the other hand, Bernstein's rating on the stock remains outperform, and the updated target still represents more than 32% upside over the next 12 months to the current price.

The update typifies the bull and bear debate around Boeing stock. The bullish case emphasizes the value case for the stock, based on the idea that it will hit its aim of $10 billion of free cash flow (FCF) in the 2025-2026 timeframe. The bulls argue that the stock is significantly undervalued with the market cap down to $111 billion.

Continue reading

Source Fool.com