CITI: 2012 Will Be The 'Year Of Boeing'

Photo: Boeing via Flickr

Boeing is having a huge month.It just closed a deal to sell $21.7 billion worth of commercial planes to Indonesia’s Lion Air.  This is Boeing’s largest deal ever.

The prior record deal was established just days ago, when Emirates agreed to buy $18 billion worth of planes.

Citigroup analyst Jason Gursky is increasingly bullish on Boeing.  He’s dubbed 2012 the “Year of Boeing.”

Gursky boosted his 2012 and 2013 EPS estimates to $4.76 and $5.71, respectively, from $4.49 and $5.44.  He has a buy rating on the stock and he boosted his price target to $82 from $78.

Our estimates increase due to our increasing confidence in the 787 ramp (raising 2013 margin estimate by 100 bps to 3%), the accretive impact of recent 777 orders (increased margin estimate by 100 bps to 34%), and a positive outlook for Commercial Aviation Services. Our estimates are modestly below Consensus likely due to our more conservative outlook on non-cash pension expenses given the discount rate environment. Our PT increases to $82 on the back of our more constructive view on [Boeing Commercial Aviation Services] margins and growth.

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