Aerospace stock Boeing (BA) is once again under intense scrutiny after tragedy struck on June 12, when Air India Flight 171 – a Boeing 787 Dreamliner – crashed into a hostel block just thirty seconds after takeoff from Ahmedabad. The disaster, India’s deadliest aviation accident in nearly three decades, claimed 260 lives and marked the first fatal hull loss of a 787 since the aircraft’s 2011 debut.
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New developments today reveal that India’s Aircraft Accident Investigation Bureau (AAIB), with support from U.S. experts, has successfully extracted data from both the cockpit voice recorder and flight data recorder. The recovered information includes over 88 flight parameters and 25 hours of cockpit audio, shedding critical light on the sequence of events that led to the crash. This process, conducted in Delhi, follows earlier government assurances that no black-box components would be sent abroad. Preliminary findings, expected within a month, may reveal whether mechanical issues, engine thrust loss, or even suspected sabotage were factors, potentially deepening the scrutiny surrounding Boeing at a time when the company is already under pressure.
Nevertheless, some on Wall Street argue the company is showing signs of regaining its footing. Redburn analyst Olivier Brochet points out that since Kelly Ortberg took over as CEO in mid-2024, Boeing has started to move in a more positive direction.
“After years of troubles, things seem to be taking a more positive turn for Boeing and the company appears healthier. Improvements in financials, culture, industrial processes and strategy, combined with production acceleration, should enable a reassessment of the stock in the market,” Brochet opined.
Brochet has pinpointed a clear upside in 737 and 787 deliveries, forecasting an additional $1.7 billion in post-tax cash profits compared to his current estimates, a 13% boost to his projected 2029 cash flow. If that scenario plays out, Boeing’s free cash flow could climb past $14 billion by the decade’s end, eclipsing its 2018 peak of $13.6 billion.
“These cash flows would also be of much higher underlying quality, after the actions taken to make Boeing healthy again: a re-focus on safety and quality, putting the condition of cultural change in place and rebuilding the balance sheet, while taking time to launch a new platform rather than force one onto the market. Our degree of confidence in the recovery has increased in recent months, and we are starting to see a level of upside to existing forecasts that is of greater magnitude than any potential downside,” the analyst opined.
On that optimism, Brochet raised his price target on Boeing shares from $180 to a Street-high of $275, implying a solid 31% upside from current levels. His rating was also upgraded from Neutral to Buy. (To watch Brochet’s track record, click here)
All in all, Boeing stock gets strong support from the rest of the Street. Based on a total of 17 Buys and 2 Holds, the stock claims a Strong Buy consensus rating. The forecast calls for one-year gains of ~8% considering the average price target stands at $226.22. (See Boeing stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.