CS First Boston downgraded Boeing Corp. (BA ) to buy from strong buy on valuation.
Analyst Pierre Chao says since hitting an intra-day low of $27.60 on Sept. 21, the stock been up 63%. He thinks the stock certainly is inexpensive when it is in the high $20s and $30s, but he says investors should be faced with a mid-$30s/mid-$40s trading range for the next few quarters as airlines continue to struggle with rebuilding their balance sheets and as aircraft orders stagnate. He sees a lack of catalysts for the next few quarters. Chao maintains his $50 12-month target, and believes there's long-term upswing for Boeing following a summer of "dead money." Also. he keeps his $3.05 2002 EPS estimate, and keeps the $2.75 estimate for 2003.