Boeing is coming out of a «dead loop». Why BofA advises buying its shares

Bank of America advised investors to buy shares of aircraft manufacturer Boeing, abandoning the neutral position, and raised the target price immediately by 40%. The investment bank analyst noted that the company has become Trump's «favorite» in trade negotiations, but the main thing is the work of Boeing's CEO, who shows top flight, taking the company out of the «dead loop» of all the problems. In addition to BofA, other Wall Street analysts have taken a more positive view on Boeing stock. Since the beginning of the year, the market value of the company has grown by 18%, outperforming the main U.S. stock index S&P 500.

Bank of America analyst Ronald Epstein raised his rating on Boeing shares from Neutral to Buy and his target price from $185 to $260, reports CNBC. Epstein's new target implies Boeing's market value will rise another 25% from its closing price on May 30. «Boeing aircraft have become a favorite tool in the Trump administration's trade agreements, and we believe this will continue to be the case,» the analyst said in a note cited by CNBC. - We view recent deals in Britain (ordering 32 airplanes), Catara (210 airplanes),the UAE (28 airplanes) and China (lifting the ban on Boeing supplying Chinese airlines) as important precedents that will play into Boeing's hands in future international moves

However, Epstein emphasized that new orders for Boeing airliners are not the main factor in his optimism. The Bank of America expert especially emphasized the efforts of Boeing CEO Kelly Ortberg, who took over the company last August. According to the analyst, Ortberg shows top flight and perfectly leads Boeing out of the «dead loop» of problems. For example, the company is already close to its goal of ramping up production of its most popular airplane, the 737 Max, and April's $10.6 billion asset sale will ease pressure on Boeing's free cash flow. All of this, coupled with Trump's «favorite» status in trade negotiations, makes Boeing stock an attractive buy, according to a BofA analyst.

In trading on June 2, Boeing shareswere up at one point by more than 2% to $211.6, but then lost half of their gains. In the midst of severe market volatility due to Donald Trump's trade policies, the company's quotes dipped below $130, but have since risen 60%. Compared to the beginning of 2025, Boeing's market value has increased by 18%, while the main U.S. stock index S&P 500 added less than 1% over the same period.

The main driver of Boeing quotations growth was the inclusion of the company's airplanes in Trump's trade agreements, CNBC notes. On May 8, the White House concluded a preliminary trade agreement with the UK, accompanied by an order from British Airways for Boeing aircraft worth almost $13 billion. In addition, Trump also concluded a number of other trade deals involving Boeing, including an order from Qatar Airways for more than $200 billion - the largest in Boeing's history.

Bank of America is not the only investment bank whose analysts have become more positive about Boeing's stock prospects after a string of good news for the company. For example, on Monday, Deutsche Bank also raised its target on Boeing from $217 to $235, reiterating its buy recommendation.

Bernstein expert Douglas Harned in turn improved his outlook from $218 to $249, reiterating a buy advice (Overweight rating). He believes the stock has upside potential of another 20% thanks to the resumption of deliveries to China and Trump's trade deals involving Boeing. Harned recognized Boeing's past failures, but under the new circumstances, he believes not owning the company's securities is a bigger risk than holding them in a portfolio.

UBS also raised its target price - from $207 to $226 - after the U.S. agreed a trade deal with Britain. Investment bank analyst Gavin Parsons also maintained a «buy» advice and said Boeing's key driver of cash flow growth remains Boeing's increased 737 Max production, and the duties will have little impact on the company's free cash flow.

In total, according to data MarketWatch, 32 analysts follow the dynamics of Boeing securities. The majority - 21 - recommend buying them (Buy and Overweight ratings), ten advise keeping previously purchased securities in the portfolio (Hold), and only one suggests selling;

The Wall Street consensus price target for Boeing shares is $211.6, suggesting a potential upside of just 2% from the closing price on May 30.