Boeing's (BA) - Get Boeing Company Report near-term future is cloudy, according to a new note from analysts at JPMorgan Chase, leading the firm to lower Boeing's price target to $430 from $450 per share while maintaining its overweight rating on the stock.
JPMorgan's overall view of the airplane maker, however, remains positive.
"Boeing is among the companies best positioned to benefit from positive aero fundamentals, in our view, and the company is consciously trying to shape the industry to capture more value for itself, which could mean strong relative performance and potential upside to estimates," said analyst Seth Seifman.
The firm also lowered its first-quarter earnings estimate by 85 cents to $3.20 per share on fewer 737 MAX deliveries in the period.
Shares of the company declined Tuesday after it said that it delivered 149 aircraft in the first quarter, down significantly from the 184 it delivered a year ago. Partially to blame for the slowdown was that its 737 MAX airplane has been grounded around the world due to safety concerns.
The new price target represents a 6.5% yield on JPMorgan's free cash flow per share estimate of $30 in 2021.
Boeing shares were down 0.6% Wednesday.
In other news, Boeing could face pressure from a new lawsuit brought by the company's own shareholders accusing Boeing of defrauding them by concealing safety deficiencies in the 737 MAX.
Boeing has lost about $34 billion of its market cap over the weeks since a second fatal crash in Ethopia led to a halt in MAX deliveries.