Boeing shares should soar “higher and higher,” Jim Cramer said Monday, citing some of the company’s strengths that were highlighted in a new analyst report. The news Jim’s outlook comes as Bernstein on Sunday upgraded Boeing to an outperform buy and raised its target price on the stock to $218 per share from $181. “Boeing is now making the progress it needed for the growth trajectory we expected before the Alaska door plug accident in January 2024,” the analysts wrote. They said Boeing’s commercial aircraft should be on a better path than 2023, though they’re not assuming all risks are gone. Bernstein analysts said they’re outlook on the 737 Max production rate remains in line with what Boeing management said on their first quarter earnings call. On the downside, tariffs will cost Boeing about $400 million after mitigation efforts, with an expectation that the costs will decline over time. However, there’s still a high degree of uncertainty. Big picture The upgrade is certainly a win for Boeing, considering the slew of issues that plagued the company in recent years. For starters, the aircraft maker came under mounting scrutiny for manufacturing mishaps, which contributed to the stock’s decline. Last year, Alaska Airlines grounded all 65 of its Boeing 737 Max 9 fleet after the door of one of its planes blew out mid-flight. The Federal Aviation Administration also responded to the incident, hitting Boeing with a production cap of just 38 planes per month. Alongside earnings last week, Boeing CEO Kelly Ortberg said the company is seeking a new production rate of 42 planes per month if the FAA approves . Bernstein said it would exercise caution as Boeing strives for subsequent production rates as high as 57 per month, on the concern that “Boeing has not done such rapid rate breaks before.” BA mountain 2025-04-28 Boeing performance since January 2017 Despite the positive updates, Boeing is still facing some headwinds amid China’s ongoing trade tensions with the United States. China recently stopped taking in Boeing planes on the heels of President Donald Trump ‘s latest wave of tariff measures. But Ortberg told CNBC last week that planes meant for China can be redirected to other customers, adding the setback will not derail their ongoing recovery. Earlier this month, Boeing settled lawsuits with the families of two people who died in the 2019 crash of an Ethiopian Airlines 737 Max. It came on the eve of the trial, which was expected to be the first of many concerning the fatal Ethiopian Airlines crash and the 2018 deadly crash of a Lion Air Max jet. Those tragedies led to a 20-month grounding of the then-popular plane and cost Boeing more than $20 billion. Bottom Line The Club recently added Boeing to our Bullpen earlier this month on the chance that the company’s planes could potentially be a bargaining chip to lower trade deficits as countries try to avoid tariffs. “It’s going higher frankly because again you could buy a Boeing and get out of the cross hairs of the government,” Jim said on Monday’s Morning Meeting . Boeing’s more predictable production timetable, along with a better balance sheet after raising $24 billion last November from an equity offering, are all good signs that things are taking shape. Boeing’s shares rose roughly 2.5% on Monday to the low $180s each. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
The exterior of the Boeing Company headquarters is seen on March 25, 2024 in Arlington, Virginia.
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Boeing shares should soar “higher and higher,” Jim Cramer said Monday, citing some of the company’s strengths that were highlighted in a new analyst report.
