Boeing (NYSE:BA) Raised to Strong-Buy at Barclays

Key Points

• Barclays upgraded Boeing to “strong buy,” joining a broadly positive analyst view. The stock has an average “moderate buy” rating and a consensus price target of $269.96.
• Boeing shares opened at $190.47, while the company’s latest quarterly results showed a $0.76-per-share loss that missed estimates, despite revenue of $24.56 billion.
• Institutional ownership stands at 64.82%, but Boeing continues to face significant risks from high leverage, debt repayments, production delays and weak returns on equity.

Boeing (NYSE:BA - Get Free Report) was upgraded by analysts at Barclays to a "strong-buy" rating in a research report issued on Friday, Zacks reports.

A number of other equities research analysts also recently weighed in on the company. BNP Paribas Exane raised Boeing from an "underperform" rating to an "outperform" rating and lifted their target price for the stock from $230.00 to $300.00 in a research report on Monday, August 3rd. Jefferies Financial Group reduced their price objective on Boeing from $295.00 to $265.00 and set a "buy" rating for the company in a research report on Monday, September 21st. Rothschild & Co Redburn boosted their price objective on Boeing from $260.00 to $285.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. The Goldman Sachs Group cut Boeing from a "buy" rating to a "hold" rating in a research report on Tuesday, August 11th. Finally, UBS Group reaffirmed a "buy" rating on shares of Boeing in a research report on Tuesday, September 29th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Boeing currently has an average rating of "Moderate Buy" and an average target price of $269.96.

Boeing Trading Up 1.4%

Shares of BA stock opened at $190.47 on Friday. The firm has a market capitalization of $150.54 billion, a P/E ratio of 82.45 and a beta of 1.26. Boeing has a 1 year low of $176.77 and a 1 year high of $254.35. The firm's fifty day simple moving average is $209.70 and its 200 day simple moving average is $215.86. The company has a current ratio of 1.14, a quick ratio of 0.33 and a debt-to-equity ratio of 6.77.

Boeing (NYSE:BA - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.34) by ($0.42). The company had revenue of $24.56 billion during the quarter, compared to analyst estimates of $24.26 billion. Boeing had a negative return on equity of 346.82% and a net margin of 2.41%. The business's revenue for the quarter was up 8.0% on a year-over-year basis. During the same quarter in the prior year, the business earned ($1.24) earnings per share. As a group, sell-side analysts predict that Boeing will post -0.91 EPS for the current year.

Institutional Investors Weigh In On Boeing

Large investors have recently modified their holdings of the stock. Jupiter Topco LLC acquired a new stake in Boeing during the second quarter worth about $911,878,000. Bank of New York Mellon Corp acquired a new position in shares of Boeing in the 2nd quarter valued at approximately $747,763,000. Legal & General Group Plc acquired a new position in shares of Boeing in the 2nd quarter valued at approximately $710,816,000. Deutsche Bank AG bought a new stake in shares of Boeing during the 2nd quarter worth approximately $539,456,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of Boeing during the 2nd quarter worth approximately $441,997,000. 64.82% of the stock is currently owned by institutional investors.

More Boeing News

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Aircraft lessor Avolon placed a firm order for 140 Boeing 737 MAX jets as part of a broader 250-aircraft transaction split with Airbus. The order reinforces demand for Boeing’s highest-volume commercial program. Boeing Lands Order for 140 737 MAX Jets
• Positive Sentiment: Boeing reported a total backlog of approximately $715 billion at the end of the second quarter, including $597 billion in commercial airplanes. The backlog provides long-term revenue visibility if the company can improve delivery rates and production execution. Boeing’s Strategic Push to Balance Rising Demand with Operational Bottlenecks
• Positive Sentiment: Southwest Airlines is reportedly leaning toward Boeing’s 787 Dreamliner for a potential long-haul international expansion, which could create a meaningful future widebody order. Southwest Airlines Weighs Boeing 787
• Positive Sentiment: Boeing’s defense business could benefit from rising demand for infrared search-and-track systems, while its approximately $14.7 billion PAC-3 seeker contract with Lockheed Martin adds longer-term defense visibility. Rising IRST Demand and Boeing’s Defense Outlook
• Positive Sentiment: Barclays included Boeing among its aerospace and defense stock picks tied to a “modern-day industrial revolution,” supporting the bullish long-term investment case. Boeing and More Buys for the Modern-Day Industrial Revolution
• Neutral Sentiment: TD Cowen lowered its Boeing price target from $250 to $240 but maintained a Buy rating, indicating reduced near-term confidence while still seeing substantial upside potential. TD Cowen Cuts Aerospace Targets
• Negative Sentiment: Investors remain concerned about Boeing’s approaching debt repayments, high leverage, production delays and weak returns on invested capital. The company’s large backlog will not translate into cash flow quickly unless deliveries accelerate. Boeing Faces a Debt Wall

About Boeing

The Boeing Company NYSE: BA is a global aerospace company that designs, manufactures and supports commercial airplanes, military aircraft, spacecraft and related systems. Its commercial portfolio includes the 737, 787 Dreamliner and 777 families, as well as the 777X program. Boeing sells aircraft to airlines, cargo operators and leasing companies around the world.

Through its defense and space operations, Boeing provides products and services for the U.S. government, allied governments and other institutional customers.

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