Boeing's report Boeing's second-quarter earnings were not perfect, but showed progress and improved sentiment on Wall Street toward the airplane maker, wrote Barron's. Major investment banks saw the first signs of a turnaround and raised their target prices on its shares. The most optimistic forecast now provides for 27% growth of quotations.

What analysts think 

Following the report, Rob Stallard of consulting firm Vertical Research Partners raised his target price from $205 to $242 per share. His estimation implies growth of quotations by 7%. Stallard rates Boeing shares at Hold.

Deutsche Bank analyst Scott Deuschl raised his target price from $245 to $255. That's nearly 13% above the closing price on July 30. "Subjectively dull, objectively improving," is how Deuschl characterized the past quarter, recommending buying Boeing stock. 

For investors, Boeing's "dull" is just right, Barron's notes: the company has faced several negative factors in recent years and hasn't posted an annual profit since 2018. Before March 2019, when 737 MAX flights were suspended, Boeing stock was worth more than $440 - that's nearly 50% more expensive than it is now.

Wolfe Research raised its target price on Boeing shares by $10 to $250 after the quarterly report, maintaining its Outperform rating, writes Investing.com. The new target is nearly 11% above the closing price on Wednesday, July 30. Analysts said Boeing is keeping its long-term free cash flow target of $10 billion unchanged and that operations are moving in the right direction.

UBS raised its target price on Boeing shares from $255 to $280 (implied 24 percent upside), maintaining a "Buy" rating. UBS attributed the decision to the upgrade to "operational and financial improvements" at Boeing following last year's strike, which were previously considered "unlikely." UBS noted that Boeing has gone from a complete production shutdown to producing 38 737 MAX airplanes per month, with improvements in key quality indicators and supply chain health, as well as a more transparent inventory situation. The bank's analysts believe Boeing is "in the very early stages of a long-term operational turnaround that will deliver strong free cash flow growth," Investing.com wrote.

Bernstein raised its target price by $5 to $287 (up 27% from the July 30 closing price), citing strong quarterly performance. Susquehanna analysts also raised their target by $5 to $270 (up 20%), emphasizing the importance of the company's turnaround, especially in the commercial aircraft segment, where 150 machines were delivered during the quarter. Barclays raised its valuation 21% to $255.

According to FactSet data cited by Barron's, the average target price of Boeing stock is now around $259. That's the highest level since about the end of 2023. In early 2024, analysts lowered estimates after a 737 MAX 9 airplane's emergency exit plug flew out during a flight.

Context

Boeing reported a second-quarter loss of $1.24 per share on revenue growth of 35% to $22.7 billion, according to data compiled by Bloomberg, Wall Street had expected a loss of $1.4 per share on revenue of $21.7 billion. 

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

Share