In a report released today, Jason Gursky from Citi reiterated a Buy rating on Boeing (BA – Research Report), with a price target of $210.00.
Jason Gursky has given his Buy rating due to a combination of factors that highlight Boeing’s potential for significant growth. He believes the market is currently undervaluing Boeing’s long-term growth prospects, with an implied free cash flow growth rate of less than 1% priced in perpetually. Gursky’s analysis suggests that a 3% growth rate is achievable, driven by the anticipated expansion in both the commercial aerospace and defense sectors.
In the commercial aerospace market, Boeing is expected to benefit from a 3.2% compound annual growth rate in airline fleet size over the next two decades, supported by a backlog of over 5,500 units worth approximately $435 billion in future revenue. Additionally, the defense market is projected to grow at a 3% annual rate from FY25 to FY30, bolstered by increased military spending and investments in deterrence by European NATO members. These factors collectively imply a potential upside of roughly 50% to Boeing’s current share price.
In another report released today, Barclays also maintained a Buy rating on the stock with a $210.00 price target.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BA in relation to earlier this year.