Boeing Co.'s (BA) "fate" is tied to the improving outlook for passenger traffic and there has been some signs of recovery in the industry, analysts at Benchmark said in a note Tuesday. They raised their price target on Boeing stock to $260 from $180, implying a 15% upside over Tuesday's stock price. "Continued anemic passenger traffic will certainly lead to an acceleration of aircraft cancellations," the analysts said. Fortunately for Boeing, the most recent data, including IATA calling April the bottom of COVID-19 air traffic crunch, American Airlines Group Inc. (AAL) increasing domestic capacity for July, and recent TSA foot traffic numbers "are all suggestive of increasing passenger confidence," the analysts said. They reiterated their buy rating on the shares. Boeing stock has declined 31% this year, compared with losses of 0.6% and 4% for the S&P 500 index and the Dow Jones Industrial Average .
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 09, 2020 11:13 ET (15:13 GMT)
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