Boeing: Cut Your Losses Before Potential Credit Downgrade

Summary:

  • Based on its operation losses, CAPEX requirements, and debt obligations, I see a large chance for BA to run out of cash in the next 6~12 months.
  • Such cash flow and liquidity issues could trigger a credit downgrade to junk grade in the near term.
  • A downgrade subsequently can further increase its borrowing costs, worsen its capital allocation choices, and lead to further stock price declines.

cut losses

yuriz

BA stock: it’s time to cut your losses

I last analyzed Boeing Company (NYSE:BA) stock about half a year ago. As you can see from the screenshot below, my last article was titled “Boeing: Next CEO’s Problem Is


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