Cramer’s stance on Boeing as the Air India crash investigation continues
CNBC’s Jim Cramer still likes Boeing stock despite the pending investigation into the tragic crash of one of the company’s jets in India earlier this month. On June 12, an Air India 787-8 Dreamliner bound for London went down in the western part of the country seconds after it took off. Hundreds were killed. Investors “have to buy” shares no matter the outcome of the crash probe, Cramer said Friday on ” Squawk on the Street .” “This is the kind of company that is working in the market,” he said on television, while earlier recognizing the tragedy. Any fault on Boeing will only “hurt the stock momentarily,” he added. Cramer’s comments come on the heels of a price target increase to $275 from $180 by analysts at Rothschild. In Friday’s strong market, Boeing shares rose more than 4% to roughly $211. The stock was only a few dollars below its June 11 close before the crash in India. Shares have gained nearly 20% year to date. BA YTD mountain Boeing YTD Rothschild said monthly delivery rates of 63 Boeing 737s and 14 of the 787s could drive the stock higher. Deliveries would potentially add $1.7 billion in post-tax profits, analysts said, a roughly 13% move up in cash flow estimates for 2029. “This could potentially take Boeing’s free cash flow north of $14 billion at the end of the decade, above the historical peak of $13.6 billion reached in 2018,” analysts wrote. Boeing stock “used to trade at 18 times for cash flow,” Cramer said, also referencing Boeing’s 2018 stats. “If it goes back to that [2018 cash flow multiple], you can see a substantial move in the stock.” Boeing was added to the CNBC Investing Club portfolio’s Bullpen on April 10 , the day after President Donald Trump proposed his most severe “reciprocal’ tariff measures. Our theory at the time was that Boeing planes would be leveraged as countries sought to reduce trade deficits with the U.S. to appease Trump. That has, indeed, played out as expected, with Boeing getting tons of orders, including a record-breaking order from Qatar Airways of up to 210 aircraft in May, during Trump’s Mideast visit. During the Club’s June Monthly Meeting on Wednesday, Cramer was itching to buy Boeing but decided to wait.
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