Aerospace and defense giant Boeing (NYSE: BA) has faced a turbulent period in recent years, grappling with challenges related to production due to supply chain constraints and financial issues. Consequently, the company’s stock has come under scrutiny from analysts as Boeing endeavors to navigate a new path.
Examining the company’s stock performance, Boeing has experienced fluctuations mirroring the financial challenges it confronts. Notably, the stock has shown gains; however, BA continues to underperform the general market, with Wall Street analysts providing varied estimates on its future outlook.
Indeed, there is a sense of optimism that the stock might peak as Boeing seeks to meet its business’s core demands.
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Wall Street take on Boeing stock
In this line, a majority of Wall Street analysts recommend purchasing the Boeing stock over the potential to rally. Notably, a cohort of 21 Wall Street analysts project that Boeing’s average price target in the next 12 months could reach $261.30, indicating marginal losses of 1.12% from the equity’s price at the time of publishing.
The 21 analysts on TipRanks as of December 17 advocate for buying the stock, with forecasts ranging from a high of $300 to a low of $217 in the next 12 months. The 12-month analysis is grounded in Boeing’s performance over the last three months. Conversely, three analysts recommend holding the asset.
Elsewhere, 31 analysts at TradingView recommend a ‘buy’ for BA, forecasting that the stock will likely reach a high of $315 and a low estimate of $190 in the next one year.
As of the close of markets on Friday, December 15, Boeing was valued at $264.27, registering daily gains of over 3%. Indeed, BA has consistently surged in 2023, boasting a 35% gain on a year-to-date (YTD) basis, and in the past month alone, the stock has rallied by 27%.
In the meantime, Boeing’s technical indicators from TradingView remain bullish. According to a summary of the one-day gauges, BA is experiencing a sentiment of ‘strong buy’ at 17, similar to moving averages at 14, and oscillators are categorized as ‘buy’ at 3.
Boeing stock fundamentals
It is worth noting that Boeing’s stock received a boost from its Q3 earnings release, setting the stage for continued growth as major past risks subside. Encouragingly, signs of recovery from the 737 MAX issues are evident, supported by a robust backlog of 398 commercial net orders. Boeing’s decision to resume manufacturing in China also signifies progress and hints at potential 737 MAX deliveries.
Due to the pandemic, Boeing has taken proactive measures to address supply-chain challenges prevalent in the aerospace sector. For instance, the company restructured supply contracts with crucial supplier Spirit AeroSystems in October, underscoring its commitment to overcoming industry-wide challenges.
Ultimately, the regulatory landscape continues to play a pivotal role for Boeing, as heightened inspections and stringent quality control measures influence delivery timelines and financial forecasts.
