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On Friday, UBS analyst Gavin Parsons (NYSE:PSN) confirmed a Buy rating on Boeing (NYSE:BA) stock with a maintained price target of $226.00. The aerospace giant, currently trading at $207.01 and approaching its 52-week high of $212.28, has shown strong momentum with a 33.93% return over the past six months. According to InvestingPro analysis, the stock appears overvalued at current levels. Parsons highlighted Boeing’s progress on its MAX aircraft production during a conference held on May 29, where the company announced it is nearing its production goal of 38 units per month. Additionally, Boeing is approaching a significant Federal Aviation Administration (FAA) review that could permit an increase to 42 units monthly.
The aerospace giant, with a substantial market capitalization of $156.21 billion and annual revenue of $69.44 billion, anticipates a milestone review by the end of the year, which could set the stage for further production expansion to 47 units per month. This rate of production exceeds the expectations of both UBS and, presumably, other investors. Parsons noted that UBS’s forecasts had been more conservative, with projections of maintaining 38 units per month until a second-quarter 2026 increase to 42, followed by a six-month interval before further rate hikes.
The analyst expressed optimism about the potential financial impact of Boeing’s accelerated production timeline. According to Parsons, if Boeing achieves a production rate of 47 units per month by the second quarter of 2026 and also realizes a higher free cash flow (FCF) margin for the MAX, this could result in a 10-20% average upside to UBS’s estimated FCF for the years 2026 to 2029. The most significant benefits would likely be seen in 2026 and 2027, driven by the reduction of inventory levels.
Boeing’s announcement and UBS’s subsequent reiteration of its Buy rating and price target affirm the company’s progress in ramping up production and potentially improving its financial outlook in the coming years. With its next earnings report scheduled for July 23, 2025, investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro, which offers detailed financial health metrics and expert research reports for over 1,400 US stocks.
In other recent news, Boeing has been the focus of several significant developments. The company is maintaining its production of the 737 MAX aircraft at 38 units per month, with plans to increase this rate pending Federal Aviation Administration (FAA) approval. Boeing CEO Dave Calhoun announced the potential to boost production to 47 aircraft per month by the end of the year, which could positively impact the company’s cash flow and the aerospace supply chain. Meanwhile, Democratic Senators Elizabeth Warren and Richard Blumenthal have called on the U.S. Justice Department to prosecute Boeing over two fatal 737 MAX crashes, opposing a preliminary agreement that would allow the company to avoid admitting guilt.
In terms of stock analysis, Benchmark reiterated a Buy rating with a price target of $215, while William Blair maintained an Outperform rating, highlighting Boeing’s advancements in its space division. Bernstein raised its price target for Boeing to $249, maintaining an Outperform rating, citing recent large widebody orders and resumed deliveries to China as growth factors. Boeing’s efforts to enhance its defense systems and normalize commercial aircraft production are seen as crucial by analysts. The company continues to navigate regulatory challenges and changing defense needs, with analysts expressing confidence in its growth potential.
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