Analyst Gautam Khanna of TD Cowen maintained a Buy rating on Boeing, boosting the price target to $270.00.
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Gautam Khanna has given his Buy rating due to a combination of factors tied primarily to Boeing’s free cash flow outlook and production trajectory. He highlights that the company reiterated its goal of generating more than $10 billion in free cash flow over time and that the 2026 free cash flow guide of $1–3 billion already incorporates several temporary drags, including the DOJ settlement, elevated 777X cash burn, higher capital expenditure, and outflows from prior defense charges. Adjusting for these items, management’s commentary implies Boeing’s underlying cash generation would be materially higher, in the “high single digit” billions range, supporting a view of strong cash inflection beyond 2026. Khanna also underscores that certification milestones and ramp-ups for key programs such as the 777X and 737 variants should drive a substantial improvement in free cash flow in 2027 and 2028 as current cash burn reverses with deliveries.
In addition, Khanna notes that Boeing Commercial Airplanes is on track to increase 737 MAX production from roughly 42 to 47 aircraft per month in 2026, with plans for further rate increases as supplier readiness improves, underpinning revenue and margin growth. While acknowledging near-term headwinds, including a new KC-46A charge and ongoing defense program risks, he points out that management is proactively staffing and positioning its defense business for future awards and improved execution. The identified GE9X engine durability issue on the 777X is viewed as manageable and not expected to delay the 2027 entry into service, reducing the risk of further major schedule disruptions. Taken together, the improving underlying cash profile, visibility on commercial production growth, and the prospect of significant free cash flow acceleration later in the decade justify maintaining a constructive, Buy-rated stance on Boeing’s shares.
Khanna covers the Industrials sector, focusing on stocks such as Boeing, L3Harris Technologies, and Booz Allen. According to TipRanks, Khanna has an average return of 21.3% and a 75.70% success rate on recommended stocks.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $265.00 price target.