Boeing
BA
$214.20
-0.42%
Boeing is a global aerospace and defense leader, operating through three primary segments: Commercial Airplanes, Defense, Space & Security, and Global Services. The company designs, manufactures, and services commercial jetliners, military aircraft, satellites, and weapons systems, competing directly with Airbus in commercial aviation and with defense contractors like Lockheed Martin and Northrop Grumman. Boeing's market position is defined by its duopoly in commercial aircraft and its critical role in U.S. defense programs, making it a bellwether for the aerospace industry. The current investor narrative centers on the recent FAA certification of the 737 MAX 7, which unlocks deliveries and revenue, alongside strategic moves like the acquisition of Boeing's defense and aviation units by Archer Aviation, signaling a potential shift in portfolio focus. Additionally, the stock's recent rally is supported by falling oil prices, which reduce airline operating costs and could stimulate demand for new, more fuel-efficient aircraft, while the company continues to navigate a complex recovery from past production and safety issues.…
BA
Boeing
$214.20
Related headlines
Investment Opinion: Should I buy BA Today?
Based on the analysis, Boeing is rated a Buy with a thesis that the recent 737 MAX 7 certification and strong revenue growth will drive a recovery in profitability and cash flow, leading to a re-rating of the stock. The consensus analyst rating is Buy with an average target price of $274.85, implying an 18.6% upside, which supports this view.
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BA 12-Month Price Forecast
The AI assessment leans bullish due to the strong revenue growth and positive analyst sentiment, but confidence is medium given the persistent profitability and cash flow challenges. The key factors supporting a bullish stance are the 13.96% YoY revenue growth, the consensus Buy rating with an average target of $274.85, and the undervaluation relative to historical PS ratios. However, the negative free cash flow and high debt levels temper enthusiasm. The stance would be upgraded to high confidence if Boeing reports positive free cash flow and expanding margins, while a downgrade to neutral would occur if revenue growth decelerates or new operational issues arise.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Boeing's 12-month outlook, with a consensus price target around $274.85 and implied upside of +28.3% versus the current price.
Average Target
$274.85
0 analysts
Implied Upside
+28.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$246 - $305
Analyst target range
Boeing is covered by 26 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 1.54 (where 1 is Strong Buy and 5 is Sell). The average target price is $274.85, implying an upside of approximately 18.6% from the current price of $231.67. The analyst sentiment is bullish, with recent actions from firms like Citigroup, UBS, and JP Morgan reiterating Buy or Overweight ratings, indicating confidence in the company's recovery trajectory. The target price range spans from a low of $246.00 to a high of $305.00, with the high target suggesting a potential 31.7% upside, while the low target implies a 6.2% upside, reflecting a relatively narrow spread that indicates moderate conviction among analysts. The high target likely assumes successful execution of the 737 MAX 7 ramp-up and margin recovery, while the low target may factor in potential delays or cost overruns. The recent institutional ratings show no downgrades, with all actions being reaffirmations of existing ratings, suggesting stability in analyst sentiment. Overall, the consensus points to a positive outlook, but the wide range of targets highlights the uncertainty surrounding Boeing's operational and financial recovery.
Bulls vs Bears: BA Investment Factors
Boeing presents a classic turnaround opportunity with significant upside potential but also substantial risks. The bull case is anchored by the 737 MAX 7 certification, strong revenue growth, and a consensus Buy rating with 18.6% upside to the average target. However, the bear case highlights persistent profitability issues, high leverage, negative free cash flow, and underperformance relative to the market. The most critical tension is whether Boeing can translate its revenue growth into sustainable profitability and positive cash flow, which would justify its current valuation and drive the stock higher. Currently, the bull case has slightly stronger evidence given the recent certification milestone and analyst optimism, but the margin and cash flow challenges remain significant hurdles.
Bullish
- 737 MAX 7 FAA Certification Unlocks Deliveries: The FAA certified the 737 MAX 7 on August 4, 2026, a major milestone that allows Boeing to begin deliveries and recognize revenue from this key aircraft. This certification is expected to drive a significant ramp-up in commercial airplane deliveries, directly boosting revenue and cash flow in the coming quarters.
- Strong Revenue Growth in Q1 2026: Q1 2026 revenue grew 13.96% year-over-year to $22.217 billion, driven by a 14% increase in Commercial Airplanes segment revenue to $9.203 billion. This growth indicates robust demand for Boeing's aircraft and successful execution of its production ramp-up, despite ongoing supply chain challenges.
- Analyst Consensus: Buy with 18.6% Upside: With 26 analysts covering the stock, the consensus rating is 'Buy' with a mean recommendation score of 1.54 (1=Strong Buy). The average target price of $274.85 implies an 18.6% upside from the current price of $231.67, reflecting strong confidence in Boeing's recovery trajectory.
- Undervalued Relative to Historical PS Ratio: Boeing's trailing PS ratio of 1.85x is near the lower end of its historical range of 4.5x to 8.5x, suggesting the stock is undervalued relative to its own history. This low multiple reflects the market's skepticism about the recovery, but if Boeing delivers on its earnings potential, the stock could re-rate higher.
Bearish
- Negative Net Income and Thin Margins: In Q1 2026, Boeing reported a net loss of $4 million and a gross margin of only 11.46%, down from 12.4% in Q1 2025. The operating margin was -6.05%, indicating that the company is still struggling to achieve profitability despite revenue growth, which could limit near-term earnings upside.
- High Debt-to-Equity Ratio of 9.98x: Boeing's debt-to-equity ratio stands at 9.98x, reflecting a highly leveraged balance sheet with significant interest expenses (e.g., $616 million in Q1 2026). This leverage increases financial risk and could constrain the company's ability to invest in growth or weather further operational setbacks.
- Negative Free Cash Flow of -$1.04 Billion TTM: Boeing's trailing twelve-month free cash flow is -$1.04 billion, indicating that the company is still burning cash. This is a concern for investors as it limits the ability to reduce debt, fund dividends, or repurchase shares, and could pressure the stock if cash burn persists.
- Underperformance vs. S&P 500 Over 1 Year: Boeing's stock has declined 0.65% over the past year, while the S&P 500 has gained 20.37%, resulting in a relative underperformance of -21.02%. This suggests that the market is not yet rewarding Boeing's recovery efforts, and the stock may continue to lag if broader market sentiment remains strong.
BA Technical Analysis
Boeing's stock is currently in a recovery phase, trading at $231.67 as of August 14, 2026, which is near the upper end of its 52-week range of $176.77 to $254.35, representing approximately 91% of the range. The 1-year price change is -0.65%, indicating a flat performance over the past year, but the stock has rebounded strongly from its 52-week low, suggesting a potential trend reversal. The current price sits 31% above the 52-week low and 9% below the 52-week high, positioning it in a zone that could see resistance at the high if momentum continues.
Beta
1.22
1.22x market volatility
Max Drawdown
-25.0%
Largest decline past year
52-Week Range
$177-$254
Price range past year
Annual Return
-4.6%
Cumulative gain past year
| Period | BA Return | S&P 500 |
|---|---|---|
| 1m | +2.7% | +2.5% |
| 3m | -2.2% | +2.7% |
| 6m | -7.7% | +11.1% |
| 1y | -4.6% | +20.5% |
| ytd | -6.0% | +12.3% |
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BA Fundamental Analysis
Boeing's revenue trajectory shows a mixed picture: the most recent quarter (Q1 2026) reported revenue of $22.217 billion, up 13.96% year-over-year, but this follows a volatile pattern with Q4 2025 revenue of $23.948 billion and Q3 2025 revenue of $23.27 billion. The company's revenue growth is being driven by its Commercial Airplanes segment, which generated $9.203 billion in the latest quarter, while Defense, Space & Security contributed $7.599 billion and Global Services $5.37 billion. However, the multi-quarter trend shows deceleration from the Q4 2025 peak, and the company's reliance on aircraft deliveries makes it susceptible to supply chain disruptions and certification delays. The 13.96% YoY growth is encouraging, but the sustainability of this growth depends on the successful ramp-up of 737 MAX 7 deliveries and the resolution of any remaining production issues.
Quarterly Revenue
$22.2B
2026-03
Revenue YoY Growth
+14.0%
YoY Comparison
Gross Margin
11.5%
Latest Quarter
Free Cash Flow
$-1.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BA Overvalued?
Given Boeing's negative net income in the most recent quarter (net income of -$4 million), the price-to-sales (PS) ratio is the most appropriate valuation metric, as earnings-based metrics are distorted. The trailing PS ratio is 1.85x, while the forward PS ratio is not explicitly provided, but the EV/Sales ratio of 2.25x offers a more comprehensive view. The gap between the trailing PS and EV/Sales suggests that the market is pricing in a recovery in profitability, as the enterprise value includes debt and adjusts for cash. Compared to the industry average, Boeing's PS ratio of 1.85x is at a premium to the broader aerospace & defense sector, which typically trades around 1.5x, representing a 23% premium. This premium is justified by Boeing's dominant market position and the potential for margin expansion as production normalizes, but it also implies that the market expects significant earnings growth. Historically, Boeing's PS ratio has ranged from 4.5x to 8.5x over the past few years, with the current 1.85x near the lower end of that range, suggesting that the stock is undervalued relative to its own history, though this could reflect the company's recent struggles and the market's skepticism about its recovery.
PE
87.2x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
28.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are substantial. Boeing's high debt-to-equity ratio of 9.98x and interest expenses exceeding $600 million per quarter pose a significant burden, especially if cash flow remains negative. The company's negative free cash flow of -$1.04 billion TTM indicates ongoing cash burn, which could force additional debt issuance or asset sales. Moreover, the thin gross margin of 11.46% and negative operating margin of -6.05% in Q1 2026 highlight the lack of pricing power and cost control, making profitability elusive. Revenue concentration in the commercial airplanes segment (41% of Q1 revenue) exposes the company to cyclical downturns and supply chain disruptions, as seen in past production halts.