BUZZ- Citigroup initiates coverage on Boeing with 'buy' rating

Reuters12-12
BUZZ- Citigroup initiates coverage on Boeing with 'buy' rating

** Citigroup initiates coverage on Boeing with "buy" rating and a price target of $265

** PT represents an upside of 32% to stock's last close

** Brokerage says the planemaker's turnaround hinges on new leadership, whose reaffirmed long-term targets renew confidence in achieving 2028 free cash flow of $10 bln

** Demand across Boeing's segments remains exceptionally strong, evidenced by substantial backlogs and strong book-to-bill, providing revenue visibility well into the next decade - Citigroup

** Adds, BA's defense, space & security (BDS) segment set to regain historical performance as key programs shift from development to production

** BDS' FY25 operating income was in low single digits vs. FY24 loss of $5.4 bln

** BA's global services remain unsung hero of the co's portfolio; leveraging high-value contracts in digital diagnostics and fleet maintenance

** As of last close, shares up 13.4% YTD

(Reporting by Megavarshini G. Somasundaram in Bengaluru)

((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))

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