Boeing (BA, Financial) is set to announce its first-quarter fiscal results on April 23, with a follow-up conference call at 10:30 am EDT. Analysts are watching closely for any developments, particularly given Benchmark's recent adjustment of Boeing's price target to $215 from $250, albeit maintaining a Buy rating. Boeing faces challenges such as the FAA's restrictions on the 737-MAX production rate, halted deliveries to China, and ongoing supply chain issues, yet it remains confident in the long-term prospects of its duopoly with Airbus (EADSY).
Meanwhile, Wells Fargo has revised its price target for Boeing from $113 to $111, retaining an Underweight rating. The banking giant anticipates a global economic slowdown, which could negatively influence demand by reducing aircraft sales, with anticipated impacts of 6% on aftermarket and 10% on original equipment sales.
In a strategic move, Boeing has agreed to sell parts of its Digital Aviation Solutions segment, including Jeppesen and ForeFlight, to Thoma Bravo in a transaction valued at $10.55 billion. Boeing plans to maintain core digital capabilities crucial for fleet maintenance and diagnostics, which will support its long-term strategy of focusing on core businesses and improving its balance sheet.
The U.S. Air Force has recently chosen Boeing over Lockheed Martin (LMT) for a contract to develop a next-generation fighter aircraft. This decision, part of the Next-Generation Air Dominance (NGAD) program, presents significant opportunities for Boeing, potentially generating $20 billion in defense sales over the next five years. In light of this, Melius Research has upgraded Boeing to a Buy, setting a target price of $204, citing that the company is entering a phase of positive developments likely to elevate its stock value.
As per current consensus from Yahoo Finance, Boeing is expected to report a first-quarter revenue of $19.79 billion, though it may face a per-share loss of $1.30. These upcoming results will be pivotal in evaluating Boeing's ongoing recovery and strategic shifts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Boeing Co (BA, Financial) is $194.88 with a high estimate of $233.00 and a low estimate of $111.00. The average target implies an upside of 21.21% from the current price of $160.78. More detailed estimate data can be found on the Boeing Co (BA) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Boeing Co's (BA, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Boeing Co (BA, Financial) in one year is $188.90, suggesting a upside of 17.49% from the current price of $160.78. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Boeing Co (BA) Summary page.
