Aerospace giant Boeing’s (NYSE:BA) troubles with its 737 Max, including a delay in its Chinese deliveries and the flurry of safety concerns about its planes, have resulted in the stock earning a downgrade. Top-rated Wells Fargo analyst Matthew Akers downgraded BA to a Hold from a Buy and lowered the price target to $225 from $280. The analyst’s price target indicates an upside potential of 11.5% after the company’s shares plunged in today’s trading.
Akers cited quality concerns and lowered his 2024 free cash flow estimate to $5.8 billion due to delivery worries. Moreover, the analyst foresees a slower resolution of the Max 9 issue amid the FAA’s audit and its focus on safety over speed. The analyst added that an audit by the Federal Aviation Administration initially focused on the 737 Max 9 could extend to other Max models with similar parts.
Is BA a Good Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 18 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 22% decline in its share price on a year-to-date basis, the average BA price target of $276.65 per share implies 36.45% upside potential.
