The Boeing Company (NYSE:BA) agreed to pay $8.1 million to resolve allegations that it violated the False Claims Act. This settlement effectively resolves the allegations that Boeing made false statements regarding contracts with the U.S. Navy for the production of the V-22 Osprey aircraft.
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The government alleged that Boeing, which produces aircraft, satellites, rockets, rotorcraft, and missiles, neglected to carry out the mandated monthly tests on autoclaves utilized in the composite curing process. Further, it did not meet other testing-related requirements.
In terms of market demand, the company continues to witness healthy orders and deliveries. During the Jefferies 2023 Industrials Conference, the company’s CFO, Brian West, said that the demand environment continues to be strong, implying strong growth ahead. Further, West reiterated the company’s long-term financial targets, including $10 billion in free cash flow.
As Boeing benefits from higher demand, let’s look at analysts’ recommendations for BA stock.
What is the Prediction for Boeing Stock?
Boeing is seeing solid demand across all of its product lines. Highlighting stellar orders, Goldman Sachs analyst Noah Poponak reiterated the Buy recommendation on Boeing stock on September 12. Poponak said, “YTD new aircraft orders remain solid.”
While orders remain strong, abnormal expenses and higher R&D spending continue to take a toll on its margins and EPS. This keeps analysts cautiously optimistic about Boeing stock.
With 10 Buy and six Hold recommendations, Boeing stock has a Moderate Buy consensus rating. Analysts’ average price target of $253.93 implies 33.35% upside potential.
