Boeing (NYSE:BA) Stock Lifted to Strong-Buy by Wolfe Research

Key Points

• Wolfe Research upgraded Boeing to “strong buy” from “hold.” The broader analyst consensus remains “Moderate Buy,” with an average price target of $270.95.
• Boeing shares opened down 1.6% at $196.72, while the company’s latest quarterly results showed a wider-than-expected adjusted loss of $0.76 per share despite revenue of $24.56 billion, up 8% year over year.
• Demand remains strong, but production execution is the key risk. New aircraft orders and potential 737 MAX 10 certification support the backlog, while wing-shop bottlenecks and uncertain Chinese demand continue to threaten delivery timing and cash generation.

Boeing (NYSE:BA - Get Free Report) was upgraded by Wolfe Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Thursday, Zacks reports.

Other research analysts have also recently issued reports about the company. Argus raised Boeing from a "hold" rating to a "buy" rating and set a $265.00 target price on the stock in a research report on Tuesday, August 11th. Bank of America reiterated a "buy" rating and issued a $270.00 price objective on shares of Boeing in a research note on Friday, September 18th. Barclays downgraded shares of Boeing from an "equal weight" rating to an "underweight" rating in a report on Tuesday, August 11th. William Blair reaffirmed an "outperform" rating on shares of Boeing in a report on Tuesday, July 28th. Finally, Jefferies Financial Group decreased their price target on shares of Boeing from $295.00 to $265.00 and set a "buy" rating on the stock in a research report on Monday. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $270.95.

Boeing Trading Down 1.6%

Shares of BA stock opened at $196.72 on Thursday. 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 has a 12-month low of $176.77 and a 12-month high of $254.35. The stock has a market capitalization of $155.48 billion, a P/E ratio of 85.16 and a beta of 1.21. The firm's 50 day moving average is $214.71 and its 200 day moving average is $217.42.

Boeing (NYSE:BA - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The aircraft producer reported ($0.76) earnings per share for the quarter, missing the consensus estimate of ($0.34) by ($0.42). Boeing had a net margin of 2.41% and a negative return on equity of 346.82%. The firm had revenue of $24.56 billion for the quarter, compared to the consensus estimate of $24.26 billion. During the same period in the previous year, the company earned ($1.24) earnings per share. Boeing's quarterly revenue was up 8.0% compared to the same quarter last year. Research analysts expect that Boeing will post -0.91 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Integrated Wealth Concepts LLC grew its holdings in shares of Boeing by 16.0% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 42,417 shares of the aircraft producer's stock worth $9,182,000 after acquiring an additional 5,862 shares during the last quarter. Rakuten Investment Management Inc. lifted its holdings in shares of Boeing by 502.3% during the fourth quarter. Rakuten Investment Management Inc. now owns 103,099 shares of the aircraft producer's stock valued at $22,398,000 after purchasing an additional 85,982 shares during the last quarter. Louisiana State Employees Retirement System acquired a new position in shares of Boeing in the 1st quarter valued at $7,961,000. Patriot Financial Group Insurance Agency LLC increased its stake in Boeing by 103.8% in the 1st quarter. Patriot Financial Group Insurance Agency LLC now owns 11,240 shares of the aircraft producer's stock worth $2,237,000 after purchasing an additional 5,726 shares in the last quarter. Finally, Deutsche Bank AG increased its stake in Boeing by 47.5% in the 4th quarter. Deutsche Bank AG now owns 2,376,243 shares of the aircraft producer's stock worth $515,930,000 after purchasing an additional 765,197 shares in the last quarter. Hedge funds and other institutional investors own 64.82% of the company's stock.

Key Boeing News

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Turkish Airlines finalized an order for up to 150 737 MAX jets, including 100 firm 737-8 aircraft and options for 50 more. Biman Bangladesh Airlines also ordered 11 787 and 737 MAX aircraft, reinforcing Boeing’s large commercial backlog. Boeing and Turkish Airlines order
• Positive Sentiment: Alaska Air expects the 737 MAX 10 to receive certification by the end of September and plans to accept its first aircraft next spring. Certification would support Boeing’s product lineup and help convert demand into deliveries. Alaska Air expects MAX 10 certification
• Positive Sentiment: Boeing is expanding its 737 MAX landing-gear exchange program after completing its first exchange with American Airlines, potentially growing higher-margin aftermarket revenue. The company also secured a $33.4 million Air Force C-17 avionics-support contract. Boeing 737 MAX landing gear exchange
• Positive Sentiment: Boeing’s engineering union recommended its latest contract, reducing near-term strike risk and supporting 777X testing. Archer Aviation also cleared an antitrust hurdle to acquire Boeing businesses including Wisk Aero, SkyGrid and Insitu, which could provide proceeds and sharpen Boeing’s portfolio.
• Neutral Sentiment: Boeing is pressing suppliers to adopt more automation as production ramps up. The initiative could improve quality and efficiency, but it also highlights ongoing manufacturing bottlenecks and the difficulty of stabilizing 737 output at targeted rates. Boeing supplier automation
• Negative Sentiment: Expectations for a new Chinese Boeing order during the Trump-Xi summit have weakened. Investors are instead focused on Boeing’s ability to execute its existing roughly 200-aircraft China agreement, removing a near-term geopolitical catalyst for the shares. China Boeing order expectations
• Negative Sentiment: Production remains the larger concern despite robust demand. Management has indicated that 737 production is not yet stable because of wing-shop flow problems, raising questions about delivery timing, cash generation and the estimated $10 billion needed to complete Boeing’s turnaround.

Boeing Company Profile

The Boeing Company is a global aerospace company that designs, manufactures and services commercial airplanes, military aircraft, satellites, space systems and other aerospace products. Its principal business areas include commercial airplanes, defense and security, and aftermarket services that support aircraft operations throughout their life cycles.

Boeing's commercial portfolio includes the 737, 767, 777 and 787 families of jetliners, while its defense and space operations provide products and services for the U.S.

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