Short-Term Catalysts Playing Out for Boeing – BofA

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A BofA Securities analyst increased the firm’s price target on Boeing (NYSE:BA) shares to $175 from $170, reiterating a Neutral rating in a note to clients Wednesday.

He wrote in a note to clients that there are short-term catalysts playing out for Boeing, namely, 737 Max and 787 deliveries, although there remain “many medium and longer-term challenges.”

“We believe that BA has become, in many ways, a fallen angel. Conversations with investors focus equally on the balance sheet and income statement. Once a darling name in the A&D world, BA is now widely seen as a turnaround story, a possible value-play or even a value-trap,” said the analyst.

Elsewhere Wednesday, a Wells Fargo analyst maintained an Overweight rating and $210 price target on Boeing in his note to investors.

“We think BA will continue to grow despite a difficult economic backdrop as aircraft production recovers from still depressed levels, and unwinding working capital should unlock cash flow in 2023 and beyond, allowing the company to de-lever,” said the analyst. “We think China will need to return 737 MAX to service soon to support its passenger travel needs, however we see upside to current 31/month rates on MAX even without China recertification.”