Boeing Downgraded Over 787 Delays

NEW YORK (AP) -- An analyst downgraded aerospace company Boeing Co. Monday, citing as-yet undetermined cost overruns on its 787 Dreamliner.

Barclays analyst Joseph F. Campbell Jr. wrote in a client note that the aircraft has the potential to be the Chicago-based company's most profitable ever.

"Today, however, the 787 is facing technical challenges and additional delays for which Boeing is as yet unable to assess either schedule or financial impact," he wrote.

Campbell cut his rating on the shares to "Equal Weight" from "Overweight" and slashed his share price target to $46 from $60.

"The cumulative financial effect of the four prior delays, the costs of pre-production, technical fixes, penalties to airlines, and supplier claims sum to significant, but as yet undisclosed, overruns."

The 787, which features ultra-light components for sharply increased fuel efficiency, is about two years behind schedule and has yet to make its first test flight.

Campbell said Boeing's accumulated overruns are getting large enough that Boeing may be forced to take a charge against earnings on most if not all of the current $100 billion-plus 787 backlog.

Shares of Boeing slipped 30 cents to $42.07 shortly after the market opened.

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