Boeing (NYSE:BA) shares climbed 2.8% yesterday after the aerospace company gave out positive long-term targets at its investor conference. The company plans to generate higher free cash flows as well as increase deliveries of its 737 MAX and 787 aircraft.
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Higher Long-Term Free Cash Flows
During FY2022, the company expects to generate a free cash flow between $1.5 billion and $2.0 billion. Impressively, the number is much higher in the $3 billion – $5 billion range in free cash flow next year.
Longer term, the company plans to boost its annual free cash flow to approximately $10 billion on the back of $100 billion in revenue by FY2025-26.
Boosted 737 MAX and 787 Aircraft Deliveries
Regarding deliveries, the company said it aims to deliver 400-450 MAX airplanes next year, compared to the 375 deliveries expected in FY2022. In addition, it targets to deliver 70-80, 787 planes in 2023.
Longer term, the company expects to achieve commercial aircraft deliveries of over 800 in 2025 and 2026, with significant growth expected in the 737s and the 787s models.
Is BA a Good Buy Today?
As per TipRanks, analysts are cautiously optimistic about the stock and have a Moderate Buy consensus rating, which is based on 11 Buys, two Holds, and one Sell. Boeing stock’s average price forecast of $187.71 implies 27.34% upside potential.
Concluding Thoughts
Following the investor conference, investor sentiment turned positive for Boeing stock.
The positive long-term targets bode well for the stock that has seen several challenges in recent years, including fatal 737 MAX crashes, slower deliveries due to supply chain constraints, labor constraints, and the recently reported Q3 revenue miss.
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