“After years of difficulties, Boeing’s situation appears to be improving,” the expert says.
An analyst gave troubled aircraft manufacturer Boeing an upgrade, stating that a turnaround attempt will cause the market to reevaluate the stock.
At Rothschild & Co. Redburn, analyst Olivier Brochet raised his price target for Boeing’s stock (BA) from neutral to buy from $199 to $275.
FactSet reports that 58% of recommendations are similar to buy, and the average target price for Boeing is $222.
In morning trade, Boeing’s shares is up 3.2% to $208.93. This year, the stock has increased by 18%.
“After years of difficulties, Boeing’s situation seems to be improving and the corporation is looking healthier. A reevaluation of the market’s stock should be possible due to improvements in financials, culture, industrial processes, and strategy, as well as the pace of production. We are beginning to perceive a level of upside to current predictions that is larger than any potential downside, and our level of confidence in the recovery has grown in recent months,” Brochet stated.
Compared to his present model, the additional upside from 737 deliveries—which he sees at a rate of 63 per month—and 787 deliveries—which he sees at a rate of 14 per month—could result in $1.7 billion in post-tax earnings. By doing so, Boeing’s free cash flow would surpass $14 billion by the end of the decade, a 13% increase over cash-flow projections in 2029.
According to FactSet, analysts anticipate free cash flow of $11.7 billion in 2029 on average.
According to the Associated Press, investigators are examining information taken from the black boxes of the Air India Boeing 787 Dreamliner that crashed two weeks ago, killing at least 270 people.
That occurred almost five years after two fatal Boeing 737 Max crashes. A door plug of an Alaska Airlines aircraft blew out in midair in a 2024 incident.
It is still not anticipated by analysts that 2028 deliveries would surpass the 806 aircraft that Boeing supplied in 2018.
Over the past five days, Boeing’s stock has increased 5.1%, surpassing the 3.5% gain of the S&P 500 index. As the following graphic from data-solutions provider BondCliQ Inc. illustrates, there have also been optimistic flows in the company’s bonds over the past week, with better buying taking place in the longer-maturity bonds.
Boeing performs better, according to independent credit analysis firm CreditSights. Matt Woodruff, an analyst at CreditSights, told MarketWatch, “We have had an outperform view on Boeing for some time, really since they issued $24 billion of equity and mandatory convertible bonds last year.” “We have been optimistic about the story since they established that liquidity. Rebuilding the company’s capacity to manufacture aircraft has been a major component of it.
