Why Boeing Doesn't Have The All Clear Yet

When nearly 70 hard-bitten Wall Street analysts flew to Seattle to visit Boeing Co. in March, Alan R. Mulally, who heads the engineering team designing Boeing's 777 jet, wowed them with his enthusiasm about the new, computerized design process. "That guy must eat pixie dust for breakfast," says Howard A. Rubel, C.J. Lawrence Morgan Grenfell Inc.'s aerospace analyst. "Nine out of 10 people in that room would have gotten up and followed him wherever he went." But when the analysts returned to New York, not one recommendation was upgraded--not even Rubel's, which has carried a "hold" rating for 14 months. Investors are so bearish that the company has been trading at its worst multiple relative to the market since it imploded in the early 1970s.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.