For a while, good news was in short supply for aircraft maker Boeing (NYSE:BA). Now, however, things are turning around, and investors are responding accordingly. Boeing managed to land a whole step up from Credit Suisse. Its analyst, Scott Deuschle, upgraded the company from Sell to Hold while also raising the share price target from $121 per share to $200 per share.
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Essentially, Deuschel improved his outlook on Boeing by noticing that many of the concerns he’d held previously were now no longer in the picture. One of the biggest was the number of planes the company delivered. Back in the third quarter, the company delivered just 112 planes. In the fourth quarter, that increased to 152 planes, which turned out to be the single best quarter Boeing had for commercial jet deliveries since Q4 2018.
Despite this, Deuschel had reasons for not upgrading straight to Buy. He noted there were supply chain risks to consider, as well as the company’s overall valuation. Further, Deuschel saw problems with Boeing Defense, Space, and Security, which represented an ongoing risk to Boeing’s overall operations. Finally, there was the matter of positioning, as there was increasing competition in the field, making the market overall crowded. Macroeconomic issues also played a part in keeping Deuschel’s hand away from a double upgrade.
Wall Street, meanwhile, is cautiously optimistic. Analyst consensus currently calls Boeing stock a Moderate Buy with 2.27% upside potential thanks to its average price target of $218.77.
