Aerospace stock Boeing (BA) is finally showing signs of real improvement, according to top TD Cowen analyst Gautam Khanna who said the company has reached a “real turning point” as it heads into 2026. In his new note, Khanna kept his Buy rating on the stock with a $240 price target, indicating 21% upside potential.
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Khanna said investor interest in aerospace is high, with stocks like Howmet (HWM), GE Aerospace (GE), and HEICO (HEI) trading at rich valuations. But Boeing has been left out of the rally due to past production problems. If execution keeps improving, he thinks the stock could catch up in 2026.
Why Cowen Is Upbeat About Boeing Stock Now
The 5-star analyst noted that production on the 737 and 787 programs has “turned the corner.” With output improving, Boeing now has a clearer path to stronger cash flow. His model calls for about $2.8 billion in free cash flow in 2026, rising to $7.7 billion in 2027 and $11.7 billion in 2028, which implies a 6% free cash flow yield.
Khanna views that level as attractive for a company of Boeing’s size. He also pointed to the recent integration of Spirit AeroSystems, which gives Boeing more control over its supply chain and should support smoother production over time.
Looking ahead, Khanna thinks demand for repair and service work in the industry will eventually level off, and that shift could push investors toward companies that build aircraft. If Boeing continues to execute, he sees it as the most likely stock to benefit.
It is worth noting that Khanna ranks 34 out of more than 10,000 analysts tracked by TipRanks. He has a success rate of 73%, with an average return per rating of 18.60% over a one-year timeframe.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 13 Buys, two Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 20.73% rally in its share price over the past year, the average BA price target of $248.77 per share implies 25.19% upside potential.
