(Reuters) – Boeing’s $10 billion annual cash flow target could be delayed by about two years, to 2027-28, and the company would need to raise $30 billion before developing a new plane, Wells Fargo said, downgrading the stock.

Shares of the Dow group fell more than 8 percent on Tuesday to a nearly two-year low after senior analyst Matthew Akers recommended Boeing to an “underweight” rating and cut his price target to $119, a 32 percent drop from the last closing price.

“Boeing has about $45 billion in net debt and needs to reduce it before the next aircraft development cycle begins,” Akers said, adding that debt reduction will eat into the company’s cash flow by 2030.

The aircraft maker is working to recover from the crisis triggered by a flight accident in January that led to regulatory restrictions on production of the 737 MAX, thereby weighing on free cash flow.

“With new aircraft likely to be launched in the next few years, Boeing needs to strengthen its balance sheet more quickly,” said Akers, who is rated three out of five stars on LSEG Workspace for his estimation accuracy.

“We expect that a capital increase of approximately $30 billion will be required to return to zero net debt by 2027.”

In its response, Boeing referred to Chief Financial Officer Brian West’s earnings call in July, in which he said the aircraft maker would manage its balance sheet prudently and increase liquidity if necessary.

The company had outlined an annual cash flow target of $10 billion by 2025 or 2026 in 2022.

Boeing’s free cash flow per share could rise to around $20 this decade if the company delays production of new planes “for a few more years” and simply pays off debt, Akers says. But that would put the company at risk of losing market share to rival Airbus SE in the long run.

Boeing shares have lost almost 33.5 percent of their value this year.

(Reporting by Pratyush Thakur, Abhijith Ganapavaram in Bengaluru; Editing by Shreya Biswas)