Boeing All Done Growing?

Macquarie Capital analyst Rob Stallard wrote last week that while the potential reversal of the U.S. Air Force's award of the tanker order to rival Northrop Grumman (NOC Quote - Cramer on NOC - Stock Picks) is good news, "the major factor influencing Boeing stock remains the outlook for commercial aerospace, and we doubt whether the outcome of the tanker battle will have that much impact for good or for bad on the share price.

"This is in contrast with the previous 12 months, where company specific issues with the 787 have been the major factor," said Stallard, who has a neutral rating. During the next three months, Macquarie expects to receive or intends to seek investment banking business from Boeing.

Meanwhile, Bank of America analyst Harry Nourse last week wrote, "We believe that $130+ oil and weakening traffic may cause some of Boeing's airline customers to take an updated view of their growth plans, or their ability to recapitalize.

"We prefer to await tangible progress on 787 and a clearer indication of airline health before becoming more positive," Nourse said. Bank of America has a financial relationship with Boeing that includes providing investment banking services and holding more than 1% of the common stock.

While global airlines have recently performed better than their U.S. counterparts, the International Air Transport Association warned recently of a diminishing outlook due to fuel prices. "This is an extraordinary crisis with the potential to re-shape the industry with impacts throughout the global economy," said IATA CEO Giovanni Bisignani, in a prepared statement.

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