Gautam Khanna, an analyst from TD Cowen, maintained the Buy rating on Boeing. The associated price target remains the same with $240.00.
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Gautam Khanna has given his Buy rating due to a combination of factors that indicate a positive outlook for Boeing. The company’s free cash flow (FCF) in the second quarter exceeded expectations, and Boeing has maintained stability in the production of its 787 and 737 models. Although there are some concerns about the certification timing of the 737-7/10 models, Boeing’s overall FCF projections remain optimistic, with a long-term target of $10 billion.
Boeing’s plans to increase the production rate of the 737 to 42 per month by the end of 2025, and potentially beyond 60 per month, align with industry trends and competitive benchmarks. Additionally, Boeing’s management has expressed confidence in achieving a significant FCF target by 2028, despite current challenges such as legal payments and trade uncertainties. These strategic moves and financial projections contribute to Khanna’s positive outlook on Boeing’s stock.
In another report released today, RBC Capital also maintained a Buy rating on the stock with a $250.00 price target.
Based on the recent corporate insider activity of 39 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.