Positive Developments and Increased Production Capacity Boost Boeing’s Buy Rating

UBS analyst Gavin Parsons maintained a Buy rating on Boeing on September 26 and set a price target of $280.00.

Gavin Parsons has given his Buy rating due to a combination of factors that signal positive developments for Boeing. The FAA’s decision to allow Boeing limited delegation for issuing airworthiness certificates for the 737 MAX and 787 models starting in late 2025 indicates growing confidence in Boeing’s compliance and safety measures. This move is seen as a precursor to lifting the production rate cap on the MAX, which could significantly benefit Boeing’s stock.
Additionally, reports suggest that the FAA may permit an increase in the 737 MAX production rate to 42 planes per month, which would enhance Boeing’s free cash flow and alleviate some regulatory uncertainties. This potential increase in production capacity reflects progress in Boeing’s operational metrics and could lead to improved financial performance. Parsons’s analysis includes projections of Boeing’s free cash flow in the coming years, with expectations of substantial growth, further supporting the Buy recommendation.

BA’s price has also changed moderately for the past six months – from $178.550 to $221.260, which is a 23.92% increase.