Boeing (BA, Financial) is actively navigating a complex landscape of tariffs and trade agreements as it seeks to manage its global supply chain efficiently. A significant portion of Boeing's supply network is anchored in the United States, with additional components imported from Canada and Mexico. These imports benefit from exemptions under the United States-Mexico-Canada Agreement (USMCA), which helps mitigate some international trade challenges.
However, the company currently faces a 10% tariff on certain parts sourced from Japan and Italy. Boeing anticipates that it will be able to offset these costs for the widebody aircraft components that are subsequently exported, noting that exports represent a substantial volume of its business in this segment. This tariff situation underlines a broader challenge Boeing faces—managing increased input costs while maintaining competitiveness.
Looking forward, Boeing hopes to see a resolution of these tariffs through diplomatic negotiations. Nonetheless, the company remains wary of potential retaliatory tariffs from other nations, which could disrupt its ability to deliver aircraft efficiently on a global scale. Boeing's strategic focus remains on managing these obstacles to ensure continuity in operations and maintaining its position in the international market.
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 11.16% from the current price of $175.32. 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 $188.67, suggesting a upside of 7.61% from the current price of $175.32. 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.
