Boeing’s Hold Rating Amidst US-China Trade Tensions and Market Challenges

Bernstein analyst Douglas Harned has maintained their neutral stance on BA stock, giving a Hold rating today.

Douglas Harned has given his Hold rating due to a combination of factors impacting Boeing’s operations and financial outlook. A significant concern is the recent halt in Boeing deliveries to Chinese airlines, which is part of a broader trade conflict between the US and China. This situation is expected to affect Boeing’s free cash flow in 2025, as a considerable portion of its backlog is tied to China, either directly or through unidentified customers.
Additionally, the ongoing trade tensions may lead to a long-term shift in the Chinese market towards Airbus, further challenging Boeing’s market position. The potential for delivery delays due to tariffs and supply chain issues adds to the uncertainty surrounding Boeing’s near-term performance. Given these challenges, Harned’s Hold rating reflects a cautious stance, acknowledging both the risks and the limited upside potential for Boeing’s stock in the current environment.

In another report released today, Bank of America Securities also maintained a Hold rating on the stock with a $185.00 price target.

Based on the recent corporate insider activity of 33 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BA in relation to earlier this year.