Gavin Parsons, an analyst from UBS, maintained the Buy rating on Boeing. The associated price target remains the same with $275.00.
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Gavin Parsons has given his Buy rating due to a combination of factors, primarily focusing on Boeing’s long-term free cash flow potential and the progress in ramping up production of the MAX and 787 aircraft. Despite some near-term challenges and a slower cash recovery than initially anticipated, the steady increase in production rates and cash margins are expected to significantly enhance Boeing’s financial performance in the coming years.
Parsons highlights that Boeing’s strategic focus on increasing production rates, particularly for the MAX and 787 models, is a key driver for future growth. By 2029, Boeing is projected to achieve substantial improvements in cash margins, supported by higher prices and operating leverage. Although the 777X program remains a financial drag, its outlook is improving, and temporary increases in capital expenditures are expected to support long-term gains. Overall, these factors contribute to a positive outlook for Boeing’s stock, justifying the Buy rating.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $255.00 price target.