Boeing Price Target Raised at BofA on Improving Sentiment

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Boeing’s (NYSE:BA) price target at BofA was boosted to $170 from $150 by analyst Ronald Epstein on Friday.

Epstein, who has a Neutral rating on the stock, told investors in a research note that the reason for the increase was to account for defense re-rating on improving US and Nato defense budgets following the Russia-Ukraine conflict and improving market sentiment heading into next week’s Farnborough airshow.

“Delta is considering orders for MAX-9/10s that could be announced next week. Additionally, news on the 787 deliveries restart are expected soon,” said the analyst. We are increasing our relative valuation from 0.5x (one standard deviation below historical average) to 0.7x (in line with historical average) relative to the S&P 500.”

However, he added that while they expect Boeing to participate in the commercial aero recovery and 787 orders to restart in the second half of the year, “some significant company-specific challenges lie ahead.”