Business Corpus: Boeing Is In 'Early Days' Of Productivity Boom; Cyberattack DownplayedA Boeing productivity boost is in the early stages, according to Barclays, while the aerospace giant downplayed a cyberattack Wednesday. The post Boeing Is In 'Early Days' Of Productivity Boom; Cyberattack Downplayed appeared first on Investor's Business Daily.

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A Boeing (BA) productivity boost is in the early stages, according to Barclays. Meanwhile, the aerospace giant downplayed a WannaCry cyberattack.

The company is "in the early days of benefiting from a heightened focus on cost reduction and improved productivity" that can lead to higher margins, Barclays analysts wrote in a note dated Wednesday.

The analysts initiated coverage with an overweight rating and 388 price target.

Approving a new midmarket plane, which analysts are dubbing the "797," could further cost savings.

"New aircraft development programs provide the biggest stick by which Boeing can extract savings from its supply chain and a MoM (middle of market) development program would give Boeing a significant opportunity to go back to its supply chain for additional savings in exchange for work content," the note said.

Barclays is bullish on the aerospace giant if airline traffic continues to grow at 6% to 7%. It expects President Trump's steel tariffs to have "minimal" impact on the aerospace sector. But Trump tariffs could "trigger retaliatory measures from key customers," especially China, which accounts for roughly 20% of Boeing's order book.

On the downside, "the 777X production ramp poses the most significant threat" to the company and Barclays expects early deliveries to "burn cash." Overall high commercial deliveries and positive cash flow from the Air Force's KC-46 tanker will offset the 777X ramp up.

Shares of Boeing outperformed Airbus (EADSY) by 50% over the past year, but Barclays said Airbus seat deliveries will outgrow Boeing's through 2020.

Boeing Doesn't WannaCry Over Cyberattack

The WannaCry computer virus hit the aerospace giant Wednesday. After initial panic that the virus could spread to aircraft software, executives said damage was minimal.

"We've done a final assessment," Linda Mills, head of communications for Boeing Commercial Airplanes, said according to the Seattle Times. "The vulnerability was limited to a few machines. We deployed software patches. There was no interruption to the 777 jet program or any of our programs."

Shares climbed 2.4% to 327.84 on the stock market today. Airbus' U.S.-listed shares fell 0.2%.

Barclays also initiated Lockheed Martin (LMT) with an equal weight rating and a 369 price target. Lockheed's F-35 faces competition in the budget from other big-ticket items including Northrop Grumman's (NOC) B-21 bomber and General Dynamics' (GD) Columbia-class ballistic missile submarine.

Lockheed shares rose 0.8% to 337.93.

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