Morgan Stanley has adjusted its price target for Boeing (BA, Financial), raising it from $175 to $185, while maintaining an Equal Weight rating on the company's stock. This revision comes amid Boeing's notable advancements in aircraft production and effective execution in its Defense segment during the first quarter.
Despite these positive developments, Morgan Stanley sees the firm's current valuation as reflecting the anticipated recovery, hence their decision to uphold the Equal Weight rating. The investment firm recognizes Boeing's improved free cash flow management as a positive indicator but believes the market already factors in these enhancements into the company's stock price.
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 $195.47 with a high estimate of $233.00 and a low estimate of $111.00. The average target implies an upside of 13.40% from the current price of $172.37. 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 9.46% from the current price of $172.37. 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.
BA Key Business Developments
Release Date: April 23, 2025
- Revenue: $19.5 billion, up 18% driven by higher commercial delivery volume.
- Core Loss Per Share: $0.49, a significant improvement compared to last year.
- Free Cash Flow: Usage of $2.3 billion, reflecting higher commercial deliveries and improved working capital usage.
- BCA Revenue: $8.1 billion with an operating margin of minus 6.6%.
- BCA Deliveries: 130 airplanes in the quarter.
- BCA Backlog: $460 billion, up more than $25 billion sequentially.
- BDS Revenue: $6.3 billion, down 9% on planned lower volume.
- BDS Operating Margin: 2.5%, up 30 basis points compared to last year.
- BGS Revenue: $5.1 billion, stable year-over-year.
- BGS Operating Margin: 18.6%, up 40 basis points compared to last year.
- Cash and Marketable Securities: $23.7 billion.
- Debt Balance: $53.6 billion, down $300 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Boeing Co (BA, Financial) delivered 130 airplanes in the first quarter, exceeding internal expectations.
- The company won the F-47 program, securing its position in the sixth-generation fighter market.
- Boeing Co (BA) reported an 18% increase in revenue, driven by higher commercial delivery volume.
- The company is on track to increase 737 MAX production to 38 per month, with plans to further increase to 42 per month.
- Boeing Co (BA) completed the 100th 767 freighter conversion, marking a significant milestone in its BGS business.
Negative Points
- Boeing Co (BA) is facing potential challenges due to tariffs, particularly affecting deliveries to China.
- The company reported a core loss per share of $0.49, despite improvements from the previous year.
- Free cash flow was a usage of $2.3 billion in the quarter, reflecting ongoing financial pressures.
- Boeing Co (BA) continues to face seat certification issues affecting some 787 deliveries.
- The company is managing risks related to retaliatory tariffs and input costs, which could impact future financial performance.
