UBS raises Boeing stock price target to $207 from $190

On Thursday, UBS analyst Gavin Parsons (NYSE:PSN) increased the price target on Boeing stock (NYSE:BA) to $207 from the previous $190, while maintaining a "Buy" rating. With Boeing’s stock currently trading at $174.88 and a market capitalization of $131.39 billion, this new target suggests significant upside potential. According to InvestingPro data, analyst targets for Boeing range from $111 to $220, reflecting diverse views on the aerospace giant’s prospects. Parsons highlighted Boeing’s strengthening progress under its new leadership, noting the first quarter as a continuation of a positive trend that began in the fourth quarter.

The analyst pointed out several factors contributing to Boeing’s improved outlook. Notably, the company has effectively communicated its stance on tariffs and absorbed their financial impact. Boeing has also taken steps to mitigate supplier risks, ensuring supply chain continuity, which is critical for its operations. However, InvestingPro analysis indicates the company’s overall financial health score remains WEAK, with particularly concerning gross profit margins.

Despite the temporary halt in deliveries to China posing a challenge to Boeing’s 2025 delivery goals, Parsons believes that the aircraft manufacturer will be able to remarket its planes successfully due to robust global demand. This demand is underscored by the steady increase in the build rate of Boeing’s 737 MAX aircraft. Discussions about potentially raising the production rate to 42 units per month or more are occurring for the first time in several years.

Boeing’s focus on safety and quality has been central to its recovery. The company has implemented key performance indicators to monitor these areas closely, and it has a large inventory buffer to support increased production rates.

The UBS analyst’s revised price target reflects a more optimistic view of Boeing’s future performance, as the company continues to navigate through its turnaround phase. The aerospace giant’s efforts to address past challenges and capitalize on current market demand are key factors in this positive reassessment. Based on InvestingPro’s Fair Value analysis, Boeing appears overvalued at current levels. Subscribers can access 7 additional ProTips and comprehensive financial metrics in the Pro Research Report, providing deeper insights into Boeing’s valuation and growth prospects.

In other recent news, Boeing reported its first-quarter 2025 earnings, showcasing a significant improvement over analyst expectations. The company posted a core loss per share of $0.49, outperforming the forecasted loss of $1.25. Revenue for the quarter reached $19.5 billion, slightly above the anticipated $19.49 billion, and marking an 18% year-over-year increase. Despite ongoing trade tensions with China, Boeing remains optimistic about its future, with plans to redirect aircraft initially meant for Chinese airlines to other carriers. The company has confirmed its intention to increase the 737 production rate to 38 units per month by the end of the year. Analyst firms Bernstein and TD Cowen have maintained their ratings on Boeing stock, with price targets of $181 and $180, respectively. Boeing’s free cash flow for the quarter was negative $2.3 billion, which was better than the expected negative $3.42 billion consensus. Additionally, Boeing successfully divested a non-core asset at a favorable multiple, suggesting efficient capital management.

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