Key Stats for Boeing Stock
- Price change for Boeing stock in the last 1 year: 0%
- $BA Stock Price as of Aug. 12: $231
- 52-Week High: $254
- $BA Stock Price Target: $275
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What Happened?
Boeing (BA) stock got a boost on Tuesday after Argus upgraded the company to Buy from Hold, setting a new price target of $265.
Analyst Kristina Ruggeri pointed to real progress on production and profitability as the reason for turning bullish.
Argus highlighted a few key developments driving the upgrade. Regulators recently approved Boeing’s request to increase manufacturing output, and the company received long-awaited flight certifications for two aircraft models. Together, these clear a path for Boeing to build and deliver planes faster.
Boeing’s two biggest business segments both posted strong revenue growth and improved profit margins on a pro forma basis. Over the past twelve months, Boeing generated $94 billion in revenue, up nearly 25%. Management expects positive free cash flow for the full year, backed by higher production, better efficiency on the factory floor, and a backlog of orders that’s more profitable than in past years.
Boeing’s own earnings call backs up much of this optimism. CEO Kelly Ortberg said the company delivered 171 airplanes in the Q2, the highest quarterly total since 2018.
The 737 program is ramping toward 47 planes per month, with plans to reach 52 per month later this year. On the 787, Boeing has stabilized production at 8 planes per month in Charleston.
Certification work is also moving forward. The FAA authorized Boeing to resume issuing airworthiness certificates for all 737 MAX and 787 aircraft.
Testing wrapped up on the 737-7, and the 737-10 recently completed its final test flight. Both are expected to start deliveries in 2027.
The 777X program has completed more than 55% of its certification flight testing, with first deliveries still targeted for 2027.
Free cash flow came in at $631 million for the Q2, ahead of what the company expected. CFO Jay Malave said Boeing remains on track to hit its full-year free cash flow target of $1 billion to $3 billion, even after accounting for a $700 million payment tied to a legal settlement.
Argus also pointed to Boeing’s integration of Spirit AeroSystems, which is proceeding on schedule and should help lower risk in the supply chain. Boeing continues paying down debt, and its order backlog hit record levels across every business segment, with more than 6,200 commercial airplanes on order alone.
Not every part of the business is problem-free. Boeing recorded a $280 million charge this quarter tied to cost overruns on the VC-25B program, the new Air Force One jets. Still, management said it’s adding resources to keep that program on track for delivery in 2028.
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What the Market Is Telling Us About Boeing Stock
Boeing stock still trades within its normal five-year range based on price-to-sales, and it’s roughly in line with industry peers.
For investors, the upgrade reflects growing confidence that Boeing’s production ramp, stronger backlog, and improving cash flow can keep driving the stock higher, even as the company works through remaining challenges in its defense programs.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
