An RBC Capital Markets analyst raised his price target on Boeing Monday, saying the airplane builder should benefit from a new version of its 777.
Analyst Robert Stallard wrote that Boeing stock has been stuck in the $70s for three years and has finally broken above $80. He said he thinks investors have been looking for companies that will benefit from a broader business upturn but have missed out on the recent run-up in stock prices. Boeing fits those criteria, he wrote.
Stallard wrote that Boeing shares have risen "despite well-known 787 issues." Boeing's 787 has been grounded for two months while it works on a fix for smoldering batteries, including a fire on one parked plane. Stallard wrote that his estimates assume a six-month delay, "and we think investors have similar expectations."
Boeing has also said that it is close to a decision about whether to pursue an upgraded version of its 777.
Boeing shares fell 86 cents to $85.57 in afternoon trading. It was around $75 as recently as Feb. 25.
Stallard's new price target is $94, up from $84.
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