JPMorgan Chase & Co. Has Lowered Expectations for Boeing (NYSE:BA) Stock Price

Key Points

• JPMorgan lowered Boeing’s price target from $290 to $240 while maintaining an “overweight” rating, implying 43.82% upside from the previous close.
• Boeing’s third-quarter revenue rose 3.9% year over year to $24.19 billion, but its adjusted loss of $0.34 per share missed expectations. Production inefficiencies and supply-chain costs contributed to a $697 million operating loss in Commercial Airplanes.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average target of $250.77, although several firms have reduced targets as Boeing delays its 737 production ramp and prioritizes liquidity over share buybacks.

Boeing (NYSE:BA - Get Free Report) had its target price lowered by research analysts at JPMorgan Chase & Co. from $290.00 to $240.00 in a note issued to investors on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the aircraft producer's stock. JPMorgan Chase & Co.'s target price points to a potential upside of 43.82% from the company's previous close.

A number of other brokerages have also issued reports on BA. Susquehanna began coverage on Boeing in a research report on Wednesday. They set a "positive" rating and a $250.00 target price on the stock. Sanford C. Bernstein reissued an "outperform" rating on shares of Boeing in a report on Monday. Wall Street Zen downgraded Boeing from a "hold" rating to a "sell" rating in a report on Saturday. TD Cowen lowered their price objective on Boeing from $240.00 to $210.00 and set a "buy" rating for the company in a research note on Wednesday. Finally, William Blair restated an "outperform" rating on shares of Boeing in a report on Wednesday, September 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $250.77.

Boeing Stock Down 0.8%

Boeing stock traded down $1.31 during midday trading on Wednesday, hitting $166.87. 16,049,455 shares of the stock were exchanged, compared to its average volume of 7,055,563. Boeing has a 1 year low of $165.01 and a 1 year high of $254.35. The firm has a market cap of $131.89 billion, a P/E ratio of 72.36 and a beta of 1.26. The company has a debt-to-equity ratio of 6.77, a current ratio of 1.14 and a quick ratio of 0.33. The company has a 50 day moving average price of $199.09 and a two-hundred day moving average price of $218.16.

Boeing (NYSE:BA - Get Free Report) last issued its quarterly earnings data on Tuesday, October 27th. The aircraft producer reported ($0.34) EPS for the quarter, missing analysts' consensus estimates of ($0.25) by ($0.09). The firm had revenue of $24.19 billion during the quarter, compared to analyst estimates of $23.95 billion. Boeing had a negative return on equity of 346.82% and a net margin of 2.41%. The business's quarterly revenue was up 3.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($7.47) EPS. On average, sell-side analysts predict that Boeing will post -1.08 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. McAlister Sweet & Associates Inc. raised its holdings in Boeing by 57.2% in the 3rd quarter. McAlister Sweet & Associates Inc. now owns 45,420 shares of the aircraft producer's stock worth $8,450,000 after acquiring an additional 16,531 shares during the period. SteelPeak Wealth LLC boosted its holdings in Boeing by 660.0% during the third quarter. SteelPeak Wealth LLC now owns 94,976 shares of the aircraft producer's stock valued at $17,670,000 after acquiring an additional 82,479 shares during the period. Integrated Wealth Concepts LLC boosted its holdings in Boeing by 16.0% during the second quarter. Integrated Wealth Concepts LLC now owns 42,417 shares of the aircraft producer's stock valued at $9,182,000 after acquiring an additional 5,862 shares during the period. T3 Companies LLC boosted its holdings in Boeing by 1,487.1% during the third quarter. T3 Companies LLC now owns 17,458 shares of the aircraft producer's stock valued at $3,248,000 after acquiring an additional 16,358 shares during the period. Finally, Mather Group LLC. grew its position in shares of Boeing by 347.3% in the third quarter. Mather Group LLC. now owns 23,183 shares of the aircraft producer's stock valued at $4,313,000 after purchasing an additional 18,000 shares during the last quarter. 64.82% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Boeing

Here are the key news stories impacting Boeing this week:

• Positive Sentiment: Boeing reported $24.19 billion in third-quarter revenue, up 3.9% year over year, while its net loss narrowed substantially from the prior-year period. Operating cash flow was $1.5 billion and free cash flow was approximately $0.5 billion. Boeing Reports Third Quarter Results
• Positive Sentiment: Total backlog reached a record $745 billion, including more than 6,300 commercial aircraft. Boeing also received FAA certification for the 737-10 MAX and was selected by the U.S. Navy for the next-generation F/A-XX fighter program. Boeing Backlog and MAX 10 Certification
• Positive Sentiment: Defense and services operations improved, and Boeing projects strong long-term cargo-aircraft demand as global air-freight traffic is expected to double by 2045. Several analysts maintained Buy or Overweight ratings despite reducing price targets.
• Neutral Sentiment: Management outlined a multiyear plan targeting $10 billion in free cash flow by 2029. Analysts view the detailed roadmap as reducing uncertainty, but expect the shares to remain range-bound until production and cash generation improve. Boeing Free Cash Flow Outlook
• Negative Sentiment: The adjusted third-quarter loss of $0.34 per share was wider than analysts expected. Commercial Airplanes posted a $697 million operating loss, with supply-chain costs, production inefficiencies and an unfavorable delivery mix weighing on profitability. Boeing Jetliner Production Challenges
• Negative Sentiment: Chief Executive Kelly Ortberg said the 737 production ramp is taking longer than expected, with the 47-aircraft-per-month target pushed into 2027. The delay raises concerns about deliveries, earnings recovery and the timing of Boeing’s cash-flow goals.
• Negative Sentiment: Multiple firms, including UBS, Wells Fargo, TD Cowen, Baird, Morgan Stanley and BNP Paribas Exane, cut their price targets following the results. Boeing also halted share buybacks, signaling that liquidity remains a priority over shareholder returns.

Boeing Company Profile

The Boeing Company NYSE: BA is a global aerospace company that designs, manufactures and supports commercial airplanes, military aircraft, satellites, space systems and related products and services. Its offerings serve airlines, government agencies, defense organizations and other customers worldwide.

Boeing operates through three principal business areas: Commercial Airplanes, which develops and produces passenger and cargo aircraft; Defense, Space & Security, which provides military aircraft, weapons systems, satellites and space-related platforms; and Global Services, which offers parts, maintenance, training, engineering and other lifecycle support.

Founded in 1916 by William Boeing, the company has grown into one of the world's major aerospace manufacturers.

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