Robert Toomey, chief equity strategist at E.K. Riley Advisors, told CNBC’s “Squawk Box” that he’s not concerned about Boeing’s low profit guidance.
The aircraft builder issued profit guidance for 2007 and 2008 that’s below analysts’ consensus estimate after reporting first quarter profit and revenue gains that beat market expectations.
“I think Boeing is being conservative,” Toomey said Wednesday. “I think they’re keeping their powder dry. I think (Boeing has) a number of hurdles this year, the rollout of the 787 being a big hurdle. I don’t read that much into it.”
Toomey has a $109 price target on Boeing’s stock , which is a Dow component.
“I don’t think I’d be buying (the stock at the current level) but I’d be holding it,” Toomey said.
He said the risk in the stock is delay in rolling out the 787 Dreamliner.