Analyst: Trump budget, tax plan could send Boeing shares soaring

A new report from Morgan Stanley predicts Boeing’s stock price is likely to rise under the Trump administration to as high as $254 per share, the Puget Sound Business Journal reports

Despite a lighter flow of passenger aircraft orders in 2017, Boeing should benefit from President Donald Trump’s tax reform plans and the broader economic stimulus in the U.S., according to Morgan Stanley aerospace analyst Rajeev Lalwani.

Boeing, which houses its defense division in St. Louis County, has seen its shares appreciate by about 15 percent in 2017, closing Thursday at $178.12. Analysts have suggested that the combination of a reduction in corporate taxes and a border adjustment tax could push the stock up to $254.

The $254 target by Morgan Stanley analysts reflects an “impressive backlog” of jet orders worth an estimated half a trillion dollars and its major stock buyback program.

In a letter to Congress sent by the Aerospace Industries Association, signed by Boeing CEO Dennis Muilenburg, who is also the association’s current chairman, the group suggested that the cut in corporate tax rate and the border adjustment tax could make aerospace companies more competitive and create more U.S. jobs.


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