Tags: Arment | 787 | Boeing | earnings

Sterne Agee’s Arment Is Bullish on Boeing Ahead of Earnings

Tuesday, 23 Apr 2013 01:15 PM

By Dan Weil and David Nelson

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Boeing’s stock represents a strong holding as the company prepares to release its first-quarter earnings Wednesday morning, says Peter Arment, managing director and senior research analyst at Sterne Agee.

The stock soared 2.1 percent Friday after news that federal regulators approved Boeing’s battery fix for its 787 planes, clearing the path for them to fly again. The 787 fleet has been grounded since Jan. 16, following a battery fire on a Dreamliner parked in Boston and a smoking battery that led to emergency landing by other another 787 in Japan.

The stock stood at $88.18 Tuesday morning, only 1.4 percent from its 52-week high of $89.46.

So is it too late to buy shares of Boeing, the world’s largest aircraft manufacturer?

Watch our exclusive video. Story continues below.



Editor's Note: A full, unedited version of this interview is available exclusively to Financial Braintrust Alliance subscribers. Visit www.fbtalliance.com for more information and to sign up.

“No, it's not too late, and we'd actually be buyers of any sort of weakness we see in the stock,” Arment tells Newsmax TV in an exclusive interview. “The longer-term picture still remains very much on track regarding their ability to ramp up production through at least 2015.”

Editor’s Note: Put the World’s Top Financial Minds to Work for You

The company also will be able to pile up on cash, Arment says. “We ultimately think that translates into a healthy amount of stock repurchasing and other shareholder-enhancing activities, [including] raising the dividend.”

He notes that he didn’t think the problems with the 787 would last long, adding, “Boeing stock's going to continue to move much higher.”

The Federal Aviation Administration’s budget cuts shouldn’t hurt Boeing, Arment predicts. If the reductions cause flight delays to the point where airlines have to adjust their capacity, then there might be an issue for Boeing in terms of aircraft deliveries.

“But it's really way too early, and I don’t really see this having an impact on Boeing,” he says.

Editor’s Note: Put the World’s Top Financial Minds to Work for You


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