Boeing (BA, Financial) finds itself caught in the crosshairs of geopolitical tensions, as former President Donald Trump recently highlighted the company's ongoing challenges with China. In a social media post, Trump suggested that Boeing should consider defaulting on its agreements with China due to their failure to fulfill commitments for aircraft purchases. These unclaimed planes, according to Trump, reflect broader issues in U.S.-China trade relations.
The aviation giant has long-standing contracts with Chinese entities, which play a significant role in its global sales strategy. However, due to increasing political and economic frictions, these deals have faced hurdles, putting additional pressure on Boeing's performance and forecasts.
Aside from the aviation industry concerns, Trump also pointed out broader geopolitical issues, accusing China of contributing to the U.S. drug crisis through the supply chain of substances like fentanyl. This adds another layer of complexity to the already tense U.S.-China relationship.
The situation places Boeing in a difficult position, as it navigates not only industry-specific challenges but also the broader implications of international political dynamics. The company's management must consider both immediate and long-term strategies to address these multifaceted issues, which could have significant implications for its operations and stock performance.
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 12.97% from the current price of $173.03. 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 $188.66, suggesting a upside of 9.04% from the current price of $173.025. 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.
