Boeing’s stock has risen more than 60% since hitting a low in early April, driven by improvements in production and its growing significance in trade negotiations under the Trump administration.
On Monday, Bank of America upgraded Boeing (BA) shares from neutral to buy and raised its price target from $185 to a new Wall Street high of $260, according to The Fly.
Analyst Ronald Epstein noted that Boeing aircraft have become a favored bargaining tool in recent trade agreements brokered by the Trump administration. Deals with countries including the UK, Qatar, the United Arab Emirates, and China have established a precedent that could benefit Boeing in future global negotiations.
Operationally, Boeing has made strides in stabilizing production and reducing its free cash flow burn. CEO Kelly Ortberg recently stated that 737 MAX production is approaching the Federal Aviation Administration’s (FAA) current limit of 38 planes per month, with plans to increase output to 47 monthly by the end of the year. Production of the 787 model is also ramping up, moving from five to seven planes per month after completing an FAA review.
Bank of America highlighted Boeing’s renewed operational focus and its favored status in trade talks as key reasons why investors should consider buying the stock.
Additionally, Boeing’s jet deliveries to China may resume soon following a US-China truce. This development comes amid ongoing negotiations with Air India, which is reportedly discussing a potential order for 200 additional single-aisle aircraft as part of its multi-billion-dollar fleet expansion. This possible deal would add to a substantial 2023 order that included 470 planes from Airbus and Boeing combined, as well as a follow-up order of 100 jets with Airbus. The talks may also include plans for more wide-body aircraft.
Boeing shares climbed about 1.8% early Monday to $211.06, having rallied nearly 63% from their April 7 low of $128.88. The stock is trading just above a $209.66 buy point, following a breakout from a double-bottom base pattern in late April.
Year to date, Boeing’s stock has gained over 17%, boosted by its emerging role in trade diplomacy and progress on production targets. The new price target of $260 represents a potential 25% upside from the previous Friday’s closing price.
With input from Investor’s Business Daily and CNBC.
