Analysts' optimism about Boeing stock has reached its highest level since 2022

Boeing’s efforts to turn its business around are receiving strong support on Wall Street: analysts’ optimism regarding the company’s stock has reached a nearly four-year high, according to Bloomberg. Earlier in August, the sole “bear” withdrew its recommendation to sell the stock.

The percentage of analysts recommending that investors buy Boeing stock reached its highest level since October 2022 on Tuesday, August 11, following two rating upgrades from Argus Research and BNP Paribas over the past ten days, according to Bloomberg. None of the 32 analysts tracked by the agency currently recommend selling the stock.

“It’s time for Boeing to prove itself after several years of struggle,” said Ivan Fainset, chief investment officer and head of research at Tigress Financial. He also recommends buying the company’s stock and has set the highest target price on Wall Street at $305. This implies a 33% increase in the stock price relative to the closing price on Thursday, August 13.

The last analyst to recommend selling Boeing stock was Matthew Eckers of BNP Paribas. But even he relented on August 3 and raised the stock’s rating by two notches at once—to “Overweight” (“above market”). He stated that “the post-COVID era of uncertainty for Boeing is over.” Eckers also expects consensus forecasts for Boeing’s free cash flow to begin rising after they fell “too sharply,” and sees a path for the stock price to nearly double from current levels by 2030.

Meanwhile, Argus analyst Christine Ruggieri, who upgraded her recommendation from “Hold” to “Buy,” cited expectations of a significant increase in production volumes.

“The market was waiting for confirmation that the company’s plans were being successfully implemented, and those plans have begun to materialize,” said Joe Gilbert, a portfolio manager at Integrity Asset Management. In July, the company reported strong results, including free cash flow that significantly exceeded expectations.

“It may be too early to call this a ‘new era,’ but the shift toward positive momentum is clearly evident. This year, the company has begun to show signs of a shift toward positive momentum after several truly difficult years,” said Eric Deaton, president and managing director of Wealth Alliance.

Boeing shares rose about 1% during trading on August 14. Year-to-date, they are up nearly 7%, while the broad-market S&P 500 index has risen 13% over the same period. Shares of Airbus, Boeing’s main competitor, which is listed on the Paris Stock Exchange, rose by about 8% over the same period.

Analysts’ growing optimism comes as Boeing received the long-awaited certification from the U.S. Federal Aviation Administration for its 737 Max 7 on August 3. This event marked the end of a process that lasted nearly a decade, during which two fatal crashes occurred and the company faced a quality control crisis, Bloomberg notes.

The company's CEO, Stephanie Pope, called this "a turning point in Boeing's recovery."

Of the 32 analysts covering the aircraft manufacturer's stocks, the majority—26—recommend buying them. The remaining six advise holding them in a portfolio.

This article was AI-translated and verified by a human editor