Boeing Is Having a Good Day And This Is What Wall Street Thinks Is Next

Aerospace giant Boeing (NYSE: BA) is notching a winning day, gaining over 2% on a Wall Street analyst upgrade while the rest of the markets are standing still. Boeing is benefiting from a positive analyst call after Bernstein recommended buying BA stock now while the getting is good and even injected some signs of FOMO for investors who wait on the sidelines.

Bernstein’s Douglas Harned reportedly upgraded Boeing stock to an “outperform” rating from “market perform” and lifted the price target to $218 per share, suggesting the stock has runway for gains of a whopping 20%. 

Boeing’s gains come on volume of 6.6 million shares, which is below its average daily volume of over 8 million shares trading hands. BA stock traded as high as $184 today but has since come off its best levels of the day to hover at $181 per share. Boeing stock is currently 8.2% shy of its 52-week high.

Boeing Turnaround

Bernstein’s Harned is encouraged by Boeing’s turnaround efforts in the wake of a string of critical failures that resulted in a crisis of confidence around the company’s aircraft. According to the analyst firm, Boeing has the potential to pick up where it left off before recent setbacks, including the Alaska door plug fiasco from last year, and is “making the progress it needed for the growth trajectory” it was on prior to that incident. 

While Boeing still has work to do to repair its tarnished reputation and stock price, the Bernstein analyst believes it will come through stronger than before a rough 2024, which included fatal crashes. The Bernstein analyst wrote, “Boeing has historically been a stock that has traded on momentum. Once the trajectory solidifies, the stock can take off. If you wait, you can miss it.” 

Boeing’s gains also come on a day when separate analyst firm Jefferies is reportedly hosting a conference call dedicated to the aerospace and defense sector on which it is addressing a group of stocks including Boeing. 

Bank of America analysts are maintaining a “hold” rating on Boeing stock with a price target of $185, a more cautious view in the current market environment.

Now What?

Over the past 52 weeks, Boeing stock was knocking on the door of $200 per share, giving it a glimpse of that momentum Bernstein analysts talked about. While Bernstein analysts are bullish on BA shares, BofA analysts are cautious, waiting to see how the company is able to navigate its own recovery as well as external headwinds like tariffs. While the stock poses its share of risks, it has a recently appointed CEO at the helm and is doing all it can to recapture its former glory. As a component of the Dow Jones Industrial Average, Boeing also has history on its side.

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