Why Shares of Boeing Are Up Today
Shares of Boeing (NYSE: BA) gained 6% on Thursday morning after the aerospace giant was initiated as an "outperform" by RBC Capital. Boeing shares have lost more than half of their value year to date, but RBC's Michael Eisen sees the stock bouncing back, along with aircraft demand, relatively quickly.
Boeing has been hit hard by the COVID-19 pandemic, which has forced it to dump its dividend and temporarily suspend some operations, and has caused its customers to halt expansion plans. Airlines have seen travel demand fall to near zero, leading them to cut flights and ground planes. That means less demand for Boeing jets and spare parts, causing the company to burn through $4.7 billion in the first quarter.
Image source: Boeing.
Source Fool.com
