Boeing (BA) PT Raised at Bernstein; 'Upward Momentum Fueled by Recent Events'

Bernstein SocGen Group analyst Douglas Harned raised the price target on Boeing (NYSE: BA) to $249.00 (from $218.00) while maintaining an Outperform rating.

The analyst commented: "Upward momentum fueled by recent events; We raise our target to $249, as positive events support the stock’s upward momentum. We upgraded Boeing on April 27th (“Boeing: Upgrade to Outperform - Back to the Future? Target $218”) with progress on 737MAX and 787 production ramps, improvement in defense performance, and solid cash position that outweighed potential negatives from tariffs.

Last week, we saw large new widebody orders, a restart of deliveries to China, and support for defense programs, raising our confidence in Boeing’s growth path. There is still more upside potential. We assume more conservative upward rate breaks than management has targeted. Operating leverage could take margins higher. Boeing’s defense business (BDS) could return to its former role as a powerful cash generator. None of this is without risk, given Boeing’s many missteps over the last decade. But, as positive elements appear to line up, we believe there is more risk in not owning a stock with a history of momentum. The stock reached $440 in 2019 when “it is different now” led to sell-side targets as high as $700 (even after the first 737MAX crash). The stock reached $266 in late 2023 before the Alaska Airlines door plug incident. Our valuation multiple is still low compared to history pre-737MAX grounding. The 2027-29 FCF yield is also better than comparables."

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