Boeing stock price target lowered to $275 by UBS on 777X charge

Investing.com - UBS lowered its price target on Boeing (NYSE:BA) to $275.00 from $280.00 on Thursday, while maintaining a Buy rating on the aircraft manufacturer’s stock. Despite the slight reduction, UBS’s target remains significantly above Boeing’s current trading price of $203.25, though InvestingPro analysis suggests the stock may be overvalued compared to its calculated Fair Value.

The price target reduction follows Boeing’s third-quarter 2025 results, which included a $4.9 billion charge related to the 777X program that UBS described as "larger than anticipated." This aligns with InvestingPro data showing Boeing is not profitable over the last twelve months, with a concerning -$15.22 basic EPS.

Despite the near-term adjustment, UBS remains bullish on Boeing’s multi-year cash trajectory, citing several positive factors including backlog extending into the next decade, pent-up demand for new aircraft, and increasing production rates with stable or improving key performance indicators. The aerospace giant, with a market capitalization of $154.33 billion, maintains a broader analyst consensus rating of Buy (1.5), with targets ranging from $170 to $287.

The firm also noted Boeing’s supply chain appears healthier with inventory buffer, while the defense segment is growing with signs of margin stability. This positive outlook comes despite Boeing’s overall Financial Health Score of 1.41 (rated as WEAK by InvestingPro), reflecting challenges in profitability metrics.

UBS expects investor focus to shift back to normalized cash flow upside potential once Boeing provides visibility into 2026, which the firm anticipates will likely occur with fourth-quarter earnings in January. Investors seeking deeper insights can access Boeing’s comprehensive Pro Research Report, available exclusively through InvestingPro, which offers expert analysis on what truly matters for this prominent player in the Aerospace & Defense industry.

In other recent news, Boeing reported a significant loss in its Q3 2025 earnings, with earnings per share at a negative $7.47, far below the forecasted negative $0.46. However, the company’s revenue surpassed expectations, reaching $23.3 billion compared to the anticipated $21.93 billion. Boeing is also planning to double the production of its 787 Dreamliner at its South Carolina facility, aiming to increase output to 14 aircraft per month in the coming years. This expansion involves a $1 billion investment and is expected to raise production to 8 Dreamliners per month by the end of this year.

In terms of analyst perspectives, JPMorgan has lowered its price target for Boeing to $240 from $251, while maintaining an Overweight rating. This adjustment follows Boeing’s 777X charge and concerns over 2026 cash flow expectations. Meanwhile, BofA Securities has raised its price target for Boeing to $270, maintaining a Buy rating. BofA’s revised free cash flow estimates for Boeing are now $3,663 million for 2026, down from a previous estimate of $4,672 million. These developments reflect the mixed sentiment among analysts regarding Boeing’s future performance.

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