Boeing stocks tumbled over 8% after a Wells Fargo analyst report downgraded the company to 'underweight', as cash flow limitations impede on its rating.
With aircraft delivery delays and added costs, the bank said it saw ""growing production cash flow running into a new aircraft investment cycle, capping free cash flow a few years out.""
Wells Fargo expect Boeing's free cash to peak in 2027 and will need to issue more stock in order to improve its capital structure, analyst Matthew Akers said in a September 3, 2024, report.
""Boeing carries $45bn net debt on its balance sheet,"" the report said, ""and we estimate paying this down would consume all of its cash through 2030. However, we doubt it can kick off a new aircraft programme without first cleaning up its balance sheet.""
Boeing downgraded to underweight by Wells Fargo, stocks tumble
