Boeing stock target raised to $230 by TD Cowen

On Thursday, TD Cowen demonstrated confidence in Boeing (NYSE:BA), as the firm increased its price target on the aerospace giant’s stock to $230 from the previous $200, while retaining a Buy rating. The revision reflects positive expectations regarding Boeing’s production capabilities and regulatory approvals in the near future. The stock, currently trading near its 52-week high of $209.66, has shown remarkable momentum with a 46% gain over the past six months. According to InvestingPro data, Boeing’s current market capitalization stands at $154.36 billion.

Gautam Khanna, an analyst at TD Cowen, noted that Boeing’s production ramp-up for its 737 model to 38 planes per month is becoming more likely to occur in Q3 of this year. Additionally, Khanna believes that obtaining Federal Aviation Administration (FAA) approval to exceed this production rate by the end of the year is a realistic outcome. While InvestingPro analysis indicates the company currently faces weak gross profit margins and hasn’t been profitable over the last twelve months, analysts anticipate sales growth in the current year.

The analyst also pointed out that the planned production rate of seven 787 aircraft per month is on track to be achieved around the same timeframe. This projection is based on Boeing’s current operational plans and does not take into account potential changes in tariff policies, which Khanna described as dynamic but so far not detrimental to Boeing’s delivery schedules.

Boeing’s stock price target increase by TD Cowen aligns with the firm’s anticipation of Boeing’s production milestones and regulatory clearances. These developments are significant for Boeing as it works to recover from past production and certification challenges.

Investors and market watchers will be keeping a close eye on Boeing’s progress as the company aims to meet these production goals and maintain its delivery timelines amidst the broader industry and regulatory landscape. Get deeper insights into Boeing’s financial health and growth prospects with InvestingPro, which offers exclusive access to 12 additional ProTips and comprehensive analysis through the Pro Research Report, available for over 1,400 top US stocks.

In other recent news, Qatar Airways has made a record-breaking order with Boeing for up to 210 widebody aircraft, including 130 Boeing 787 Dreamliners and 30 777-9s, with options for an additional 50 aircraft. This significant transaction is part of a broader series of deals between the United States and Qatar, totaling over $243 billion, and is expected to support approximately 400,000 jobs in the U.S. The agreements span various sectors, with Boeing’s aircraft sale being a key component, valued at approximately $96 billion. Additionally, Qatar has signed a $200 billion deal with Boeing for 160 jets, further expanding its national airline. Meanwhile, Boeing reported delivering 45 jets in April, nearly doubling its deliveries from the same month last year, amidst ongoing production challenges. This includes deliveries to Chinese airlines, although further acceptance was paused due to trade disputes. In a separate development, AviLease, based in Saudi Arabia, has ordered 20 Boeing 737-8 airplanes, with options for 10 more, marking its first direct purchase from a manufacturer. This move aligns with Saudi Arabia’s strategic vision to enhance its aviation sector.

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