Barclays upgrades Boeing to 'overweight' on cash flow outlook

Investing.com-- Barclays upgraded Boeing Co (NYSE:BA ) to "overweight" for the first time since 2019, raising its price target to $210 from $190 banking on a brighter outlook for free cash flow and operational improvements.

The note highlights Boeing’s efforts to shore up its balance sheet, a revamped leadership under new CEO, an aerospace veteran Ortberg, and a hard reset to MAX production, setting the stage for a successful ramp-up in 2025.

Analyst expect a normal capital structure over the next couple of years, even with cash burn in 2025, adding that recent guidance on free cash flow appeared conservative and closer to breakeven could be achievable.

“We think upside for the stock now mostly relies on sustained positive momentum for production and deliveries, which we believe BA is poised to demonstrate in 2025,” analyst added.

The brokerage noted that while near-term headwinds persist, cultural shifts under new leadership and improved workforce training post-IAM strike position the company for long-term growth.

Boeing shares have room to trade at the high end of their historical valuation range, Barclays (LON:BARC ) added, maintaining a positive view on its trajectory through 2025.

Source: Investing.com