Boeing, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Gautam Khanna from TD Cowen maintained a Buy rating on the stock and has a $240.00 price target.
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Gautam Khanna’s rating is based on a combination of factors that suggest a positive long-term outlook for Boeing. Despite mixed third-quarter results, the company has received approval from the FAA to increase production rates for its 737 and 787 models, which indicates potential for increased revenue. The production rate for the 737 is set to rise to 42 per month, with future increments planned, and the 787 production rate has been approved to increase to 8 per month, with further hikes anticipated.
Additionally, Boeing has improved its free cash flow outlook for 2025, raising expectations by $500 million compared to previous guidance. This improvement is supported by expected advances in tanker deliveries, although aircraft deliveries in the fourth quarter are projected to be lower than the third quarter. While there are challenges, such as the delay in the 777X entry into service and ongoing supply chain constraints, the potential for significant free cash flow growth as production rates increase and efficiencies are realized supports the Buy rating.
According to TipRanks, Khanna is a top 100 analyst with an average return of 17.4% and a 71.89% success rate. Khanna covers the Industrials sector, focusing on stocks such as General Dynamics, ATI, and Boeing.