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Sonic Bust?

Boeing shares fell to a two-year low on Wednesday after Goldman Sachs cut its rating on the plane maker and defense company to "sell" from "neutral," reflecting falling orders, problems facing airlines and high fuel prices.

“We expect the weak macroeconomic backdrop and record fuel prices to hurt airlines and translate to a significant slowing in the order book," said Goldman analyst Richard Safran in a research note published on Wednesday.

He put a $60 price target on the stock for the next 12 months, but said there was substantial risk the stock could go lower.

What does the downgrade mean for the overall aerospace sector?

For insights we turn to Rockwell Collins CEO Clayton Jones. Following is a summary of his main points.

What can you tell us about the problems at Boeing?

I don’t think there are big problems at Boeing, replies Jones, none at all. I think they’ve got the 787 where it needs to be and I feel reasonably confident they’re going to meet their schedule.

How vulnerable are you to a slowdown at Boeing?

A little, replies Jones. But only 27% of our revenue comes from Boeing and Airbus. The market is way over playing the news.

What’s your plan going forward?

To continue to do what we’ve done for the past 6 years, he says. Increase our operating margins and increase return on investments. We’re going to continue to do that and as we do the market will take care of itself.

Traders what do you think?

I like this stock, says Guy Adami.

I don't know, counters Karen Finerman, oil is the elephant in the room.

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To see our entire interview with Rockwell Collins CEO Clayton Jones please watch the video.














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Trader disclosure: On June 25, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (AAPL), (ANR), (CHK), (NOK), (NVDA), (ORCL), (TSO), (XLF), (XTO), Najarian Owns (YHOO) Calls, (MYGN) Calls, (RIMM) Calls, (SLB) Calls, (UBS) Calls; Finerman Owns (GS); Finerman's Firm Owns (AXP), (MSFT), (PZN), (SUN), (TSO), (VLO), (KALU), (CYBX); Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm Owns SPX Index Puts; Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY); Karen Finerman's Partner In Her Hedge Fund Is On The Board Of Cyberonics; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (BNI), (CME), (FXC), (LUV), (GOOG), (INTC), (IYT), (XLF), (SU), (YHOO), (FCX)

Terranova is chief alternatives strategist at Phoenix Investment Partners; Phoenix Investment Partners Ltd. Owns (RWX), (DBC), (DBV), (IGE), (AAI), (ALK), (AMR,) (APA), BP plc, British Airways plc, (CHK), (CVX), (COP), (CAL), (DAL), ENI SPA, (XOM), Gazprom, (HA), (HES), (HOC), (HSE), (JBLU), Lukoil, (MRO), (MUR), (OXY), Petrobras Intl Fin, Petro-Canada, (PBR), Petroleos De Venezuela, (QAN), (RJET), Royal Dutch Shell plc A Shares, (SKYW), (LUV,) (SU), (TSO), Texaco Capital, Total SA, (UAUA), (LCC), (VLO)

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