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On Monday, RBC Capital Markets sustained its positive stance on Boeing (NYSE:BA) shares, maintaining an Outperform rating and a price target of $200.00. The aerospace company’s stock, currently trading at $182.67, has rebounded from earlier softness in the first quarter of 2025, drawing attention to its production outlook and first-quarter free cash flow (FCF) improvement. According to InvestingPro data, analyst targets for Boeing range from $113 to $250, reflecting diverse market opinions on this prominent aerospace & defense player.
Boeing’s stock has been under the spotlight following a favorable shift in sentiment, partly due to its significant win of the Next (LON:NXT) Generation Air Dominance (NGAD) contract. The stock has demonstrated strong momentum, posting a 10.05% return over the past week and a 14.31% gain over six months. RBC analysts underline the opportunity for tactical investment in Boeing, citing the improved FCF in the first quarter of 2025, minimal immediate supply chain risks, and the positive shift in market sentiment.
The analysts note that Boeing’s primary challenge in the first half of 2025 will be to maintain its execution as it aims to sustain elevated delivery levels, a task made possible by its high inventory levels. Despite recent concerns in the market, RBC does not anticipate significant near-term risks to Boeing’s stock. InvestingPro analysis reveals additional insights about Boeing’s financial health and future prospects, with over 8 exclusive ProTips available for subscribers.
Looking ahead, the second half of 2025 and the year 2026 are expected to be crucial for Boeing as it attempts to accelerate production rates among its suppliers. With a market capitalization of $137.16 billion and analysts forecasting sales growth for the current year, RBC’s reiteration of its Outperform rating and $200 price target reflects confidence in Boeing’s strategic direction and its ability to navigate upcoming challenges.
In other recent news, Boeing has been awarded a significant contract by the U.S. Air Force to develop its Next-Generation Air Dominance (NGAD) Platform, marking a major advancement in defense capabilities. This contract is expected to generate $20 billion in profitable defense sales over the next five years. Additionally, Korean Air is nearing a $32.7 billion agreement with Boeing for new aircraft, which would include orders for 20 777-9 and 20 787-10 planes, alongside GE Aerospace engines. This deal signifies a strengthening of U.S.-South Korea relations, with a memorandum of understanding already in place.
Melius Research recently upgraded Boeing’s stock rating from Hold to Buy, setting a new price target of $204. This upgrade comes as Boeing surpasses expectations with its post-strike 737 delivery ramp-up, projecting 105 aircraft deliveries in the first quarter of 2025, exceeding the consensus estimate. Furthermore, Malaysia Aviation Group has announced plans to purchase 30 Boeing 737 aircraft for delivery in 2029 as part of its fleet modernization efforts. The order includes both 737 MAX 8 and 737 MAX 10 models.
Meanwhile, Boeing’s leadership under CEO Kelly Ortberg has been praised for driving cultural and operational improvements, contributing to its reputation as a more reliable supplier. The company’s recent contract wins and strategic orders are viewed as pivotal in maintaining its competitive edge in the aerospace industry.
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