Analysts See Boeing as a Buying Opportunity in Current Conditions
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Analysts See Boeing as a Buying Opportunity in Current Conditions

Boing opened 0.8% at the market open on Tuesday after RBC analysts hiked the stock's price target to $275 from $200.
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Shares of Boeing (NYSE: BA) rose 0.8% at the opening bell on Tuesday after RBC Capital analysts raised their price target on the stock. Despite years-long challenges, Wall Street is beginning to see BA as a buying opportunity, citing stabilizing fundamentals and better 2024 prospects. 

RBC, Deutsche Bank, Goldman Sachs Bullish on Boeing 

Boeing’s shares saw an opening surge on Tuesday following a positive endorsement from analysts, who issued yet another bullish call on the stock.

The planemaker climbed higher after RBC Capital hiked its rating to Outperform from Sector Perform and raised the 12-month price target for the stock to $275 from $200. The new price objective is 25% higher than Boeing’s closing price on Monday. 

The upgrade comes from the financial services firm’s optimistic stance regarding Boeing’s 2024 prospects. 2023, another year of supply chain constraints is ending, and the jet manufacturer is set for production ramps on the business’s commercial and defense sides. RBC analysts believe these changing circumstances would drive demand in both categories. 

“After another year of supply chain disruptions and lowered expectations, we believe the set-up into 2024 is favorable. We believe buy-side expectations for 2024-2025 [free cash flow reflect conservatism, and as execution on the MAX and 787 continue to gradually improve, we believe the potential for positive revisions is growing.”

said RBC analysts led by Ken Herbert.

Last week, Boeing received a stock rating upgrade from Deutsche Bank from Neutral to Buy. Further, Goldman Sachs added BA to its conviction buy list at the beginning of the month.

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Boeing Recovers Significant Stock Losses After Declining on Major Q3 Loss

The upgrades fueled the stock’s gains of over 17% from Nov. 1 through Monday, helping it recover significant ground after recent lows. 

The company’s share price plummeted below $180 in late October after the planemaker posted another significant quarterly loss and trimmed its full-year forecast for deliveries to address a manufacturing issue on the aircraft. 

Notably, Boeing reported a Q3 loss of $.16 billion, wider than analysts expected on a per-share basis. The operating loss in the aviation giant’s defense business was $924 million, substantially higher than Wall Street’s estimates of $400 million. 

After a disappointing report, investors’ moods were lifted when reports revealed that China may end its freeze on purchases of Boeing’s best-selling 737 MAX aircraft after more than four years. Simultaneously, the company is holding talks with Emirates over a potential major 777 jet order. 

Do you expect Boeing to retrace its 2023 losses as we head into 2024? Let us know in the comments below.