In a report released yesterday, Seth Seifman from J.P. Morgan maintained a Buy rating on Boeing, with a price target of $251.00.
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Seth Seifman’s rating is based on Boeing’s robust backlog and the potential for improved execution in the coming years. The company has a significant backlog valued at approximately $500 billion, which provides a strong foundation for future growth. Boeing’s focus on gradually increasing the production rates of its 737 and 787 models, as well as advancing the 777X towards service entry, is seen as a positive strategy to capitalize on existing demand.
Additionally, Seifman highlights the importance of Boeing stabilizing its Defense unit’s performance, which could contribute to a positive shift in cash flow over the next few years. The expectation of a multi-year reversal in free cash flow from 2024’s substantial outflow is a key factor in the Buy rating. Furthermore, the projected price target of $251 by December 2026 reflects confidence in Boeing’s ability to enhance its cash flow and balance sheet, despite trading at higher multiples compared to the pre-pandemic period.
In another report released yesterday, UBS also maintained a Buy rating on the stock with a $280.00 price target.