Boeing's Stock Rallies After J.P. Morgan Turns Bullish

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of Boeing Co. climbed 1% in premarket trade Friday, after the aerospace and industrial giant was upgraded at J.P. Morgan, citing potential for further outperformance amid positive aerospace industry fundamentals. Analyst Seth Seifman raised his rating to overweight from neutral and boosted his stock price target to $240, which 16% above Thursday's closing price of $206.23, from $205. Seifman said he doesn't believe he will be a "contrary indicator" by turning bullish after the stock already outperformed the industrial sector and broader market by a wide margin, because of "positive aero fundamentals," a conscious effort to try to shape the industry "to capture more value for itself" and an upbeat outlook for free cash flow and earnings. And although investor sentiment has improved, Boeing has received "very few upgrades the past year and holder data shows few active investors establishing or adding to large positions," Seifman wrote. The average rating of the 24 analysts surveyed by FactSet is hold, and the average stock price target is $199.43, which is 3.3% below Thursday's close. The stock has soared 32.5% year to date through Thursday, while the SPDR Industrial Select Sector ETF has climbed 11.1% and the Dow Jones Industrial Average has gained 9.1%.

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