Boeing’s turnaround is gaining altitude, according to Bank of America. In a Friday note, the bank reiterated its buy rating on the aerospace and defense stock and raised its price objective to $270 per share from $260. The new forecast implies shares can rise 21% from Thursday’s close. Boeing’s second-quarter results , released on Tuesday, showed that the company raked in revenue of $22.75 billion, topping expectations. Its adjusted loss of $1.24 per share was also less than forecast. Boeing delivered 150 airplanes in the second quarter, its most since 2018. This was a bright spot for analysts who have been looking for signs of improvement at the aerospace giant, which has been plagued by a series of crises in recent years. “Boeing reported one of its cleanest quarters in recent years, beating EPS and Free Cash Flow estimates, as well as laying out a realistic view for what’s ahead. Boeing Defense (BDS) reported no negative EAC adjustments, Global Services (BGS) continues to operate smoothly, and Commercial Airplanes (BCA) is improving,” Bank of America’s Ronald Epstein said. Despite its solid print, Boeing ended Tuesday with a 4% decline. Epstein attributed these losses to statements made by Boeing CEO Kelly Ortberg. “We see the sell off as a reaction to CEO Kelly Ortberg’s comments BA will soon request the 737 production cap be increased. In our discussions with investors, it seems many were expecting a much more aggressive 737 production rate increase by 3Q,” he wrote. “Despite the noise, we appreciate the discipline and see further upside ahead.” Epstein pointed to Boeing’s continued progress — specifically, its production stabilization and operational performance improvement. This has been reflected by increased production of Boeing’s 737 and 787 aircrafts. “BA is making progress on meeting KPI metrics set by the FAA and we see the path to lifting the 737-production rate cap becoming clearer,” Epstein added. “While the market seems to have anticipated an accelerate timeline, we still believe the most likely scenario for the rate cap lift will be in the fourth quarter.” The analyst also noted that Boeing has recently emerged as a preferred trade tool for President Donald Trump. Epstein predicts orders will increase as Trump “continues working through deals globally.” BA YTD mountain BA YTD chart Shares of Boeing have surged 25% this year.
