In a report released yesterday, Josh Sullivan from Benchmark Co. maintained a Buy rating on Boeing (BA – Research Report), with a price target of $215.00.
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Josh Sullivan has given his Buy rating due to a combination of factors related to Boeing’s production capabilities and future outlook. The CEO of Boeing, Ortberg, has indicated that the company is on track to increase the production of its 737-MAX aircraft to 47 units per month by the end of the calendar year. This projection is significant for Boeing’s cash flow and the broader aerospace supply chain, as it demonstrates confidence in overcoming previous skepticism about production timelines.
Currently, Boeing is ramping up its production to 38 units per month, with plans to stabilize at that rate before seeking approval from the FAA to increase to 42 units per month. The successful meeting with the FAA to raise 787 wide-body production from 5 to 7 units per month serves as a positive precedent for the 737-MAX’s production process. The anticipated production increments, occurring no sooner than six months apart, suggest a structured and achievable growth path, reinforcing Sullivan’s positive outlook on Boeing’s stock.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $226.00 price target.
BA’s price has also changed moderately for the past six months – from $155.440 to $208.180, which is a 33.93% increase.