Boeing shares fall on news of Goldman downgrade
June 25, 2008 by Tisa Silver
Filed under Finance
Shares of Boeing are down over six percent after analysts at Goldman Sachs downgraded the company from “neutral” to “sell.”
High oil prices have taken a toll on the airline industry and as a result, analysts expect Boeing to see fewer orders and therefore, fewer sales dollars.
Hopefully this downgrade is valid. In early May, Goldman upgraded the consumer discretionary and financial sectors. The firm instructed investors to increase their portfolio weights in each of the battered sectors.
Earlier this week, Goldman admitted that this was a huge ratings error. In a research note, analyst David Kostin stated, “Our thesis was clearly wrong in hindsight.” In the same note he advised investors to underweight both sectors.
As for Boeing, Goldman analysts placed a new target price of $60, which is 14 percent shy of the stock’s current price.
