Published: Thursday, July 24, 2008
Boeing stock plummets on analyst's downgrade
Labor negotiations, defense cuts, 787 risks concern Wall Street
The Boeing Co.’s stock has dropped nearly 6.5 percent Thursday, just a day after company officials reaffirmed Boeing’s financial outlook.
An analyst from Cowen & Co. cut Boeing’s rating to neutral from outperform on Thursday forcing down Boeing’s stock by roughly $4.34 to $62.38. The analyst cited concerns over Boeing's commercial order exposure as well as risk to its defense programs. The broker also worried about the impact upcoming labor negotiations could have on Boeing. Ongoing risk with Boeing's 787 jet program factored into the analyst's downgrade as well.
The move comes a day after Boeing reported lower than expected second quarter results. The aerospace giant’s stock on Wednesday closed down 3.77 percent. Boeing’s stock edged toward its 52-week low of $62.02, on July 15.
An analyst from Cowen & Co. cut Boeing’s rating to neutral from outperform on Thursday forcing down Boeing’s stock by roughly $4.34 to $62.38. The analyst cited concerns over Boeing's commercial order exposure as well as risk to its defense programs. The broker also worried about the impact upcoming labor negotiations could have on Boeing. Ongoing risk with Boeing's 787 jet program factored into the analyst's downgrade as well.
The move comes a day after Boeing reported lower than expected second quarter results. The aerospace giant’s stock on Wednesday closed down 3.77 percent. Boeing’s stock edged toward its 52-week low of $62.02, on July 15.
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