Shaers of Boeing Co. rallied 2.0%, enough to pace the Dow Jones Industrial Average’s premarket gainers, after Cowen analyst Cai von Rumohr turned bullish on the aerospace and defense giant, citing improving air traffic and a brighter outlook regarding regulatory oversight. Von Rumohr raised his rating on Boeing to outperform, after being at market perform since January 2020, while boosting her price target to $290 from $240. Von Rumohr said “fast improving air traffic” is bolstering demand for Boeing aircraft, and while lingering oversight from the Federal Aviation Administration and the timing of approval of Boeing’s MAX planes in China will limit the upside to 2021 financial results, he believes the outlook for the next three years is brighter. He said Boeing’s second-quarter results could “miss” expectations, given the China approval delay, but he doesn’t believe it’s in the U.S. or China’s interest to hold trade hostage, so he doesn’t see the situation as a long-term overhang. The stock’s implied price gain would add about 32 points to the Dow’s price, while Dow futures gained 251 points, or 0.7%.
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