Boeing in Berenberg's spotlight ahead of its full-year results

Shares in Boeing were expected to get a lift this week after the aircraft manufacturer reports its full-year earnings on Wednesday.

Two weeks ago, Boeing shares hit a record high of $352.18 after strong production numbers appeared to ensure the company's status as the world's leading airplane manufacturer.

Price target raised

On Monday, a research note from Berenberg implied further gains for Boeing stock after the broker raised its price target to $395 from $282 and its earnings per share forecasts between 2018-22 by between 15-36%.

Berenberg, which reiterated its buy rating on the stock, said it expected better a operational performance during its outlook period, a rate of increase in the production of 787 Dreamliners, benefits from US tax law changes, a 25% dividend hike and further share buybacks.

"The upgrade cycle is far from over, even considering that current earnings per share (EPS) forecasts will treble by 2022," said Berenberg analyst Andrew Gollan.

He added: "Boeing continues to offer high-quality growth and returns that are worth paying a premium for."

Earnings forecasts

The broker expects Boeing to comfortably meet its twice-raised full-year EPS guidance for 2017 of between $9.90-$10.10 a share and $12.5bn in operating cash flow.

Boeing reports full-year earnings on Wednesday. Analysts polled by Thomson Reuters expect earning per share of $10.22 and revenue of $92.6bn - above the company's own guidance of between $90.5bn-$92.5bn.

There was little market reaction to Berenberg's upgrade in pre-market trade, however. The shares were down 0.68% four hours ahead of the US market open at $340.88.