Boeing's Stock Falls Back From Record Highs After Goldman Sachs Downgrade

Shares of Boeing Co. slumped 2.3% in morning trade, enough to make them the biggest loser among the Dow Jones Industrial Average's components, after they were downgraded by Goldman Sachs. The downgrade comes after the aerospace giant's stock ran up 5.7% last week, the second-biggest weekly gain in 16 months, to close Friday at an all-time high. Analyst Noah Poponak cut his rating to sell from neutral, and his 12-month price target to $132 from $146, on the belief that investors may see "tougher aircraft demand fundamentals" and on increasing concerns over deferred production of 787 models. "With a sustained lower fuel price and pockets of global growth volatility, the demand equation for aircraft could worsen, and [Boeing] shares are highly correlated to new aircraft orders," Poponak wrote in a note to clients. New aircraft supply has now doubled from the trough, and growth rates should slow." Even with Monday's weakness, Boeing's stock has rallied 17% over the past three months, while the Dow has gained 1.5%.