Stock market today: S&P 500 shrugs off hawkish Fed minutes to snap losing streak
Investing.com - Boeing (NYSE:BA) stock rose after Jefferies analyst Shelia Kahyaoglu reiterated a Buy rating with a $255.00 price target on the aircraft manufacturer. The stock, which has gained over 27% in the past six months, currently trades at $215.38. According to InvestingPro data, analyst targets range from $150 to $287, with a strong buy consensus rating of 1.56.
The reiteration follows a Wall Street Journal report suggesting Boeing has recently shifted focus toward developing its next-generation single-aisle (NGSA) aircraft to eventually replace the 737 MAX. According to Jefferies, the report indicated CEO Kelly Ortberg met with Rolls-Royce earlier this year, where the engine manufacturer reportedly pitched potential engine technology for the NGSA.
Jefferies noted that Boeing management has consistently stated that meeting near-term operational goals and completing current Boeing Commercial Airplanes and Boeing Defense, Space & Security development programs to drive positive free cash flow are prerequisites before launching a new aircraft, with timing expected around 2035 or later.
The research firm highlighted that engine technologies will be critical to achieving the 15-20% rule-of-thumb fuel efficiency improvements needed for the NGSA launch, though airframe optimization could play an equally significant role. Jefferies mentioned that while Rolls-Royce may offer its UltraFan technologies, competitors GE/Safran are developing their RISE suite of technologies, and RTX may offer a next-generation GTF.
Jefferies suggested the conversation between Boeing and Rolls-Royce likely centered on Rolls-Royce’s current role as a widebody engine supplier for the 787 production ramp-up from 7 per month toward 10+ per month, given that GEnx holds more than 80% of the skyline. For deeper insights into Boeing’s financial health, operational metrics, and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.
In other recent news, Boeing has secured multiple defense contracts worth approximately $310 million for various aircraft systems and sustainment projects. This includes a $76.6 million contract for the Universal Armament Interface for B-52 aircraft and a $35.3 million modification for C-17 Globemaster III sustainment, increasing the total contract value to $7.92 billion. Additionally, Boeing’s stock rating was reiterated at "Outperform" by RBC Capital, which maintains a $250 price target, following the FAA’s update on the company’s aircraft certification process for the 737 MAX and 787 models.
Air India has also secured a $215 million loan for refinancing Boeing aircraft, facilitated by Bank of India and Standard Chartered Plc. In labor-related developments, Boeing and the International Association of Machinists and Aerospace Workers have agreed to resume negotiations with the help of a federal mediator to resolve a nearly two-month-long strike. This strike has caused significant disruptions in Boeing’s production operations. These developments highlight Boeing’s ongoing activities in defense, commercial aircraft, and labor negotiations.
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