Analyst David Strauss upgrades Boeing to overweight, citing positive production and delivery momentum, improved financials, and new leadership.
Barclays analyst David Strauss upgraded Boeing to overweight from equal weight, noting he's positive for the first time since 2019. Strauss also upped his price target by $20 to $210, now reflecting the potential for shares to rally 23.6% over Friday's close. Strauss wrote to clients in a Monday note, 'We think upside for the stock now mostly relies on sustained positive momentum for production and deliveries, which we believe BA is poised to demonstrate in 2025.
While we don't see an overwhelmingly compelling upside case on typical valuation metrics, we believe positive momentum on production, deliveries and cash can carry the stock higher.' An improved balance sheet and more reasonable outlook for free cash flow are two drivers of the upgrade, Strauss said. Outside of financials, he pointed to Boeing's new leadership and hard reset on Max plane production amid controversy as other reasons to have positive expectations. Strauss' call offers a vote of confidence amid a rough patch for the embattled plane maker. Around a year ago, a reputational crisis began after a door plug blew off an Alaska Airlines plane midflight. Boeing shares have dropped about 4% in 2025, extending last year's slide of more than 32%. In that vein, Strauss titled his note announcing this rating change 'Darkest Before Dawn.' He's now in the majority on Wall Street with buy-equivalent ratings, per LSEG. BA 1Y mountain Boeing, 1-year Shares popped more than 2% in Monday's premarket trading following the upgrade. To be sure, Strauss listed the timing of regulatory approval for a production cap and any further delays to certification of certain models as risks to his outlook. He noted that in a negative scenario for the stock, shares could instead tumble more than 26% over the next 12 months
BOEING AEROSPACE ANALYST UPGRADE STOCK MARKET FINANCIALS
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Barclays Upgrades Citigroup, Sees 'Inflection Point' for BankBarclays analysts upgraded Citigroup to overweight, citing an improving outlook for large-cap banks and potential for accelerating earnings growth.
Read more »
Oppenheimer Analyst's Picks for 2025: Nvidia a 'Winner', Boeing a 'No'Ari Wald, Oppenheimer's head of technical analysis, discusses his outlook on Nvidia, Boeing, and Howmet Aerospace as 2025 kicks off.
Read more »
Bitcoin ETF Sees Record Outflow, Analyst Predicts 'Step Back' in GrowthBitcoin ETFs witnessed a historic outflow of $332.6 million, equivalent to 3,413 BTC, marking the largest withdrawal since its inception. Analyst Eric Balchunas attributes this to expected market corrections and a shift after a period of consistent growth. While this trend may raise concerns, Balchunas believes it's a natural pause in the journey of Bitcoin ETFs.
Read more »
Here are Wednesday's biggest analyst calls: Nvidia, Netflix, Tesla, Broadcom, Micron, Alphabet, Boeing, Reddit & moreHere are the biggest calls on Wall Street on Wednesday.
Read more »
Jeju Air Boeing 737 Crash: South Korea Orders Inspection of All Boeing 737-800sAll but two of the 181 passengers on board a Jeju Air Boeing 737-800 died Sunday after the aircraft crashed at Muan International Airport in South Korea. Boeing shares dropped following the incident. The South Korean transportation ministry will investigate the crash and conduct a full inspection of all Boeing 737-800 aircraft in the country.
Read more »
Boeing 737 Max 9 Door Incident Sparks Safety ConcernsA recent incident involving a door plug area on a Boeing 737 Max 9 aircraft has reignited safety concerns surrounding Boeing's planes. The flight, en route from Portland to Ontario, experienced a malfunction, prompting scrutiny of the company's safety and quality standards. While Boeing insists its aircraft are safe, some travelers remain apprehensive. The Federal Aviation Administration (FAA) has previously grounded various Boeing models due to safety issues, leading to Boeing implementing improvements to enhance safety and quality. Despite the incident, many travelers continue to fly with Boeing, feeling reassured by the company's efforts to address safety concerns.
Read more »