http://www.sharewatch.com/story.php?storynumber=129553
NEW YORK (Thomson Financial) - Boeing Co. Wednesday was downgraded to equal-weight from overweight at Morgan Stanley, which said concerns over delays in the production schedule of the 787 could keep the stock range bound over the near term.
The brokerage also suspended its $140 price target.
"We have a new level of concern the 787 risks are likely to linger over the stock and not be retired as we had earlier believed," the firm said in a note to clients.
"In our view should Boeing achieve milestones like Power On in January and first flight in March, concerns will only shift to the next hurdle, keeping the shares range bound." The risk rises as the company's goals get harder, Morgan Stanley added, from first flight in the first quarter of 2008 to the delivery of 109 787s by 2009.
"We don't believe this goal is achievable," the firm said.