Boeing shares rise on upgrades

AP News
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Posted: Jan 04, 2010 12:07 PM

Shares of Boeing Co. rose Monday after two investment firms upgraded stock in the aircraft maker, citing factors including an expected increase in orders.

The shares rose $1.84, or 3.4 percent, to $55.97 in midday trading.

Jesup & Lamont upgraded the shares to "Buy" from "Hold," saying Boeing is its favorite company in commercial aerospace and should benefit in an industry that it said has stabilized and is showing signs of recovery.

Barclays Capital raised the stock to "Overweight" from "Equal Weight," saying the Chicago-based company is reducing costs related to delays in the production of its 787 Dreamliner jet by resolving disputes with suppliers. It also said the improving economic outlook lowers the risk of large production cuts.

Barclays analyst Joseph F. Campbell Jr. said even after a recent rally, Boeing shares were still cheap compared with other aerospace companies.

The 787 is made largely of composite materials and designed to be lighter and more fuel-efficient than other jetliners. It made its first test flight last month, more than two years behind schedule. The first flight was delayed five times.

Boeing has orders for 840 of the jets and plans the first delivery to Japan's All Nippon Airways in late 2010.