Bank of America has upgraded Boeing (NYSE: BA) to a Buy rating from Neutral, raising its price target to $260, a Street-high projection from the previous $185.
The call comes as Boeing begins to regain momentum across global markets, buoyed by geopolitical tailwinds and a shift in its strategic perception.
Ronald Epstein, aerospace analyst at BofA, sees recent international aircraft deals as signaling a broader political trend.
“Boeing aircraft have emerged as the favored trade tool for the Trump Administration in recent trade deals,” he noted, pointing to high-profile agreements with the UK (32 aircraft), Qatar (210), the UAE (28), and China, which recently lifted its ban on Boeing planes.
Epstein highlight’s Boeing’s stabilization
While the analyst emphasized that Boeing’s order backlog isn’t the core driver of the valuation upgrade, he highlighted operational stabilization, strategic carve-outs to alleviate free cash flow (FCF) pressure, and a broader pivot in global trade positioning as key catalysts.
BofA’s revised $260 price target implies free cash flow of $9 per share, reflecting optimism about Boeing’s recovery path.
At the time of writing, Boeing stock is trading at $207.32, with pre-market quotes up 1.88% at $211.21, signaling that investors are already reacting to the bullish upgrade.
If Epstein’s thesis plays out, Boeing’s elevation to “favored trade mechanism” status may prove a defining feature of its next growth cycle.
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