Goldman Sachs kills Boeing (BA)

Goldman Sachs cut The Boeing Company (NYSE:BA) to a "Sell" and we have an instant two year low.  To make it worse, Goldman expects shares to continue to tank, instant crash landing.

Goldman analyst Richard Safrann said today:

"We expect the weak macroeconomic backdrop and record fuel prices to hurt airlines and translate to a significant slowing in the order book".

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.  BA shares are already down 6% today and are now under $70.

Safran, who downgraded the whole commercial aerospace sector to "cautious" from "neutral," expects orders for the sector to drop 50 percent in 2008 and another 50 percent in 2009 as airlines focus on restoring profitability through aggressive capacity cuts and price increases.

"Aerospace stocks are off nearly 30 percent from October highs, but history indicates the stocks could fall another 20 percent or more as we think the market is not factoring in that the combined effect of accelerated crude prices, a weak economy and rapidly deteriorating airline fundamentals could pose a worse problem for the aerospace group than 9/11 and SARS (severe acute respiratory syndrome)," wrote Safran.

He said there is more risk to the 787 program than is priced in as the program has yet to even enter flight test, where historically most issues on development aircraft are found.

Fellow Masters, Wall Street wins this round, Boeing will head lower, the Powers-That-Be have a convincing arguement.

Other aerospace suppliers are hurting today, including BE Aerospace, Inc.(BEAV) down 11%, Spirit Aerosystems Holdings Inc (SPR), Precision Castparts Corp (PCP), Textron Inc (TXT) and Honeywell International Inc (HON).