The Boeing Co. (NYSE: BA) last week solidified its position as the best performing stock among the 30 equities included in the Dow Jones Industrial Average (DJIA). The stock added 3% to its yearly gain last week and now posts a year-to-date bump of 33.93%.
Three other Dow stocks have posted year-to-date gains of more than 20%: Apple Inc. (NASDAQ: AAPL) is up 28.68%; McDonald’s Corp. (NYSE: MCD) is up 27.57%; Visa Inc. is (NYSE: V) is up 24.24%.
Boeing’s Friday boost came after a premarket rating upgrade from J.P. Morgan. Analyst Seth Seifman raised the aerospace giant’s rating from Neutral to Overweight and lifted Boeing’s price target from $205 to $240. Boeing had broken the prior target on Tuesday.
Seifman called aerospace market fundamentals “positive” and likes Boeing’s focus on going after the services market. He also liked the company’s prospects for improved free cash flow and earnings.
Even the fact that Boeing canceled three orders for the 747 last week didn’t hurt the stock. The cancellations were the last of four orders from bankrupt Russian carrier Transaero. Two of the planes had already been built and are now parked in California waiting for a buyer.
Boeing said earlier this year that it planned to cut 747 production to just six per year. Following these last cancellations, Boeing’s backlog of 747s dipped to 17, enough to keep the line running for another two and a half years.
Boeing stock closed at $208.51 on Friday in a 52-week range of $126.31 to $208.73, and the high was posted Friday. The 12-month consensus price target is $196.79.