The Boeing Company Downside: How Low Can BA Go? $60 You Say?

by RwXMVchWD5okP25

The Boeing stock has decreased 58.5% so far this year. However, the current stock price is 52.2% lower than the figure at the end of 2017

The Boeing Company’s stock price decreased from $281.05 at the end of 2017 to $134.24, a substantial decrease of -52.2%.

-52.2% stock price decrease driven by:

1) -44.8% P/S Multiple contraction

2) -13.5% Change in Revenue per share

Q1 results in April 2020 will confirm the ground reality about demand crunch and supply disruptions – leading to Revenue Expectations for full-year 2020 falling to 25% below the figure for 2019.

This implies a reduction in Revenue per share from 135 $ in 2019 to 33.7 in 2020.

The Boeing Company’s Stock Could Potentially Drop to $60 Due To The Combined Impact of 3 Factors:

1) 25% Reduction in Revenue Expectations from $76,5 Mil in 2019 to $57.5 Mil in 2020.

2) Share count remaining around 2019-level of 568

3) Investors assigning the stock a P/S Multiple of 0.6x due to lower Revenues and Margins

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.