Are Wall Street Analysts Predicting Boeing Stock Will Climb or Sink?

Arlington, Virginia-based The Boeing Company (BA) designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services. It is valued at a market cap of $174.5 billion. 

This aerospace & defense company has underperformed the broader market over the past 52 weeks. Shares of BA have gained 20.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.6%. Moreover, on a YTD basis, the stock is up 3.3%, compared to SPX’s 5.2% rise.

Narrowing the focus, BA has also lagged the State Street SPDR S&P Aerospace & Defense ETF (XAR), which soared 44.4% over the past 52 weeks and 5.8% on a  YTD basis. 

On Apr. 22, shares of BA surged 5.5% after its better-than-expected Q1 earnings release. The company’s revenue increased 14% year-over-year to $22.2 billion, surpassing consensus estimates by 3.5%, while its adjusted EPS of $0.20 topped analyst expectations by a notable margin. Management attributed the upbeat performance to stable production rates across its commercial airplane programs and continued strength in its defense and services businesses. 

For the current fiscal year, ending in December, analysts expect BA’s loss per share to narrow by 98.6% year over year to $0.15. The company’s earnings surprise history is mixed. It topped the consensus estimates in two of the last four quarters, while missing on two other occasions.  

Among the 29 analysts covering the stock, the consensus rating is a "Strong Buy,” which is based on 21 “Strong Buy,” three “Moderate Buy,” four "Hold,” and one “Strong Sell” rating.  

The configuration is more bullish than two months ago, with 20 analysts suggesting a "Strong Buy” rating.    

On May 4, Jefferies Financial Group Inc. (JEF) analyst Sheila Kahyaoglu maintained a “Buy” rating on BA and set a price target of $295, indicating a 31.5% potential upside from the current levels.    

The mean price target of $269.54 suggests a 20.1% premium to its current levels, while its Street-high price target of $305 implies a 35.9% potential upside from the current price levels.