Hold Boeing Stock Despite 787 Turbulence: Analysts
Boeing stock has weakened slightly this week due to safety concerns surrounding its 787 Dreamliner, but two analysts advised investors to hold on to their shares despite the turbulence.
"Frankly, what we're saying to investors is 'Look, we can't say with any conviction level that there's a certain entry point where we want to jump in here and buy,'" said Carter Copeland, an analyst at Barclays. "What we want is more data."
Right now, investors are waiting to hear more information after most regulators grounded Boeing's Dreamliner due to battery-related problems under investigation.
"If you own Boeing shares here, I think you hang on," he added. "I think the long-term outcome of this is that they will sort through the problems."
Until the FAA's review of 787 is finished, Jason Gursky, an aerospace and defense analyst at Citigroup, said Boeing stock will "probably (be) a little bit gated here today for the next three months until this review is done."
Still, Gursky said in a separate interview on CNBC's "Squawk Box" that he would be looking for an entry point.
"You know, the headlines clearly have been fairly — fairly bad," he said. "It definitely creates volatility in the stock. I can't tell you exactly where the trough is going to be in the stock, but I would certainly be ready to jump on this here over the next — over the next month. I think we're going to get a nice entry point in the stock."
Copeland stressed that investors need more information.
"As investors, I think we want more data," he added. "And if you have data that gives you confidence, you can chase this stock when it's up but right now, it's hard to have conviction at any level."
—By CNBC's Katie Little; Follow her on Twitter @Katie_Little
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