UBS maintains Boeing stock Buy rating with $255 price target

Investing.com - UBS has reiterated its Buy rating and $255.00 price target on Boeing (NYSE:BA) stock, currently trading at $231.30, citing Dreamlifter flight data tracked by UBS Evidence Lab. With a market capitalization of $174.2 billion, Boeing maintains a strong analyst consensus rating of 1.66 (Buy), with price targets ranging from $150 to $285. According to InvestingPro data, the stock is trading near its 52-week high of $233.61.

The flight data, which historically correlates closely with 787 production rates, showed a 27% year-over-year increase in the four weeks ended July 9. The current flight activity implies a 787 production rate of 5.5 aircraft per month, slightly down from 5.7 per month reported a month ago, but has remained relatively stable since April. This production trend comes as Boeing shows strong momentum, with InvestingPro data revealing a remarkable 30.6% price return over the past six months, despite challenging financial health metrics.

UBS notes that Dreamlifter flights have exceeded actual production rates on average over the past two years, suggesting inventory build. The current 5.5 per month flight rate indicates Boeing is on track to meet UBS’s second-half 2025 estimate of 6 aircraft per month, with UBS modeling an increase to 7 per month beginning in the first quarter of 2026.

Flight data shows no disruption from tariffs thus far, with 34 flights tracked from Chubu Centrair Japan since April 2 (including 10 in June, 11 in May, and 9 in April, compared to 7 in March and 4 in February). Similarly, 15 flights were recorded from Taranto-Grottaglie Italy during the same period.

UBS indicates it will monitor whether the Trump administration’s recently announced tariffs for Japan will affect Dreamlifter flight data from that region, which could impact Boeing’s supply chain for the 787 program. For investors seeking deeper insights into Boeing’s supply chain resilience and comprehensive analysis, InvestingPro offers exclusive access to detailed financial health scores and expert research reports, along with 11 additional ProTips that could help navigate potential market impacts of these tariff developments.

In other recent news, Boeing has secured a $297 million deal with Angola for the export of aircraft and spare propulsion equipment. This transaction will support the acquisition of Boeing 787-10 passenger aircraft and General Electric (NYSE:GE) Aerospace spare engines for TAAG Angola Airlines, potentially creating approximately 1,400 jobs across the United States. In another development, BofA Securities has maintained its Buy rating on Boeing stock, highlighting delivery trends that align with previous months. Analysts from Aero Analysis Partners noted that Boeing has delivered 10 737 aircraft as of mid-July, and deliveries to China have shown improvement, with three completed and potential for more by month-end.

Additionally, Air India has completed inspections of fuel control switches on its Boeing 787 fleet without finding any issues. Meanwhile, President Donald Trump announced a significant $15 billion deal with Indonesia, which includes the purchase of 50 Boeing jets. This agreement is part of a broader trade arrangement that opens Indonesia’s market to U.S. products. Furthermore, the Indian Directorate General of Civil Aviation has instructed airlines to inspect fuel switches on Boeing 787 and 737 models for potential malfunctions, following proactive inspections by several airlines, including Air India.

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