Shares of Boeing (BA) - Get Report lost altitude Friday as Canaccord Genuity cut its price target on the Chicago aerospace giant, citing uncertain demand for new jets from the battered airline industry.
Boeing's stock at last check fell 1.9% to $136.36 following the price target cut by Canaccord Genuity, weaker than the 0.47% decline in the Dow Jones Industrial Average amid renewed trade tensions with China.
Canaccord analyst Ken Herbert lowered his price target on Boeing by 11%, to $155 a share from $175 a share. The new target still represents a roughly 13% premium over its current trading price.
Herbert also reiterated his hold rating on Boeing stock, noting that the firm will remain "cautious" on Boeing "until we get better visibility on the improvement in air travel and when airlines will start ordering aircraft again."
Boeing has seen a plunge in demand for new jet orders, with the jet manufacturer having "booked negative 255 net orders in 2020," the Canaccord analyst wrote.
The big decline also includes 281 cancellations for Boeing's MAX model, with the 737 MAX having been grounded for more than a year after a pair of crashes left 346 people dead.
The Canaccord analyst sees additional MAX cancellations ahead, arguing Boeing won't see a pickup in orders until 2021.
Canaccord's analyst also questioned Boeing's projections for production, which include rolling out 42 MAX jets a month in 2022 and 52 a month in 2023.
"We believe this is overly ambitious based on current backlogs and potential delivery schedules," Herbert wrote.