Shares of the second-biggest maker of airplanes Boeing Co. (BA) jumped more than 3% Wednesday after Morgan Stanley (MS) analyst Heidi Wood raised her rating on the stock to “equal weight” from “underweight”.
In a note to investors Wood said [MW] “earlier investor expectations on profit from the 787 Dreamliner were too bullish. Further, the manufacturer will likely re-engine its 737 aircraft, which would raise development costs. We believe risk/reward is fairly balanced with outlook for zero/low 787 margins and a higher R&D level offset by positive order trends and a solid backlog that provides visibility through 2013.”
BA Action: Up $0.90, or 1.43 percent, to $63.68 at 2:35 E.T. in New York Stock Exchange.