Jason Sum, an analyst from DBS, maintained the Buy rating on Boeing (BA – Research Report). The associated price target is $240.00.
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Jason Sum has given his Buy rating due to a combination of factors involving Boeing’s strategic positioning and future growth prospects. Despite recent challenges such as production inefficiencies and a cash burn in 4QFY24, Boeing’s efforts to stabilize production and enhance cash flow are expected to result in a positive turnaround by FY25. The company’s key role in the commercial aerospace sector, along with its presence in a duopoly with Airbus, ensures a consistent demand for its aircraft despite current supply issues.
Furthermore, Boeing’s planned increase in production rates for its 737 and 787 models, combined with improvements in supply chain management, positions the company well for future earnings growth. While there are execution risks, particularly in defense contracts and regulatory approvals, the anticipated stabilization of operational activities and recovery in cash flows support the Buy recommendation. The target price of USD240 is justified by Boeing’s potential for sustained growth and recovery from a low base, reflecting a premium over the sector average.
In another report released today, Barclays also maintained a Buy rating on the stock with a $210.00 price target.