Street View: Boeing's turnaround gains traction as focus shifts from survival to execution
BA•Boeing reports wider loss but turnaround continues
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Boeing
BA.Non Tuesday reported a wider-than-expected quarterly loss, weighed down by a $280 million charge related to its troubled Air Force One replacement program, despite generating free cash flow (FCF) as its turnaround efforts continued to gain traction. -
Median PT of 29 brokerages covering the planemaker's stock is $268.50 - LSEG data.
Broker views shift to production, cash flow and certifications
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J.P.Morgan ("overweight," PT: $290) says Boeing's recovery story remained largely intact, following the results, describing its turnaround as "proceeding with few changes".
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RBC ("outperform," PT: $265) says the focus is now shifting to Boeing's ability to sustain higher production rates, convert deliveries into cash flow and secure regulatory approvals for the 737-7, 737-10 and 777X programs.
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Morgan Stanley ("equal-weight," PT: $250) says "FCF will be the key investor watch item, with current trajectory priced in but potential for the stock to re-rate upwards on acceleration of path to ~$10bn".
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BofA Global Research says investors are likely to focus on planned 737 production ramp-up, certification of 737-7 and 737-10 variants and 777X's expected entry into service in 2027.
