Boeing’s stock has recently seen an upswing following positive analyst ratings and significant contract awards, sparking renewed investor interest. On March 24, 2025, shares of Boeing (NYSE:BA) rose in premarket trading after Melius Research upgraded its rating from Hold to Buy, setting a new price target at $204. This upgrading comes on the heels of Boeing’s notable win of the Next Generation Air Dominance (NGAD) contract, which is projected to generate $20 billion in profitable defense sales over the next five years.
In conjunction with this, RBC Capital Markets maintained an Outperform rating on Boeing, with a price target of $200.00. Currently trading at $182.67, Boeing’s stock has rebounded from early-year dips, drawing attention to its promising production outlook and improved first-quarter free cash flow (FCF). According to InvestingPro data, analyst targets for Boeing range widely from $113 to $250, reflecting various market sentiments regarding the aerospace and defense giant.
Analysts at RBC underline the tactical investment opportunities showcased by Boeing’s stock, which has returned 10.05% over the past week and a significant 14.31% over the past six months. They also highlight the company’s challenge in maintaining execution and elevated delivery levels despite recent market fluctuations, buoyed by strong inventory levels.
Following its significant contract awards, including a monetary agreement with Korean Air worth $32.7 billion for new aircraft, Boeing has experienced a positive shift in market sentiment, enhancing its image as a reliable supplier. This deal includes orders for 20 Boeing 777-9 and 20 787-10 planes, which symbolize a strengthening of relations between the United States and South Korea, especially with a memorandum of understanding already in place.
Further solidifying its performance, Boeing has seen customer interest from Malaysia Aviation Group, which announced plans to purchase 30 Boeing 737 aircraft slated for delivery starting in 2029. This order encompasses both the 737 MAX 8 and 737 MAX 10 models, contributing to the company’s robust pipeline of expected deliveries.
Boeing’s leadership, under CEO Kelly Ortberg, has received praise for fostering cultural and operational improvements within the company, all contributing to its enhanced reputation in the aerospace field. The company aims to sustain momentum as it attempts to elevate production rates among its suppliers, proving essential for maintaining competitive advantages in the industry.
In the short term, however, analysts at RBC do not foresee any significant near-term risks to Boeing’s stock, as it navigates the first half of 2025 while pushing for strategic success amidst production adjustments.
Overall, Boeing is positioned effectively to capitalize on upcoming production demands and navigate a competitive environment, enhancing its financial health and market position. With strong analyst ratings and significant contracts in hand, the company's outlook appears promising as it embarks on crucial phases in the coming quarters.
