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Investing.com — TD Cowen reaffirmed their outperform rating on Boeing (NYSE: ) in a note on Thursday, increasing their price target to $200 from $190.
The bank also cited a combination of fundamental changes and strategic changes as key reasons for the change, predicting that Boeing’s stock could see a rapid rise as the execution progressed.
Boeing has had a tough year, marked by a 31% year-over-year drop in its stock price, which TD Cowen says has positioned it as the “Dog of the Dow” for the stock’s recovery.
The bank’s analysts attribute the decline to a “tough year” for the company, which included heavy FAA oversight after the January crash, a 53-day strike, a CEO change, a $15 billion cash burn, and supply chain delays. chain.
However, the company believes that these issues led to changes in 2025 and beyond, knowing that “we expect the goods to move quickly, because of the inflection (production of aircraft after the war) is happening now.”
Looking further, TD Cowen emphasizes Boeing’s potential for significant free cash flow (FCF) growth, estimating $10-12 billion in FCF by 2028.
Although challenges remain – such as delays in the 777X certification and production time – the bank shows “surprisingly” how Boeing’s FCF is growing, helped by good margins on large models like the 787 and 737.
Boeing’s management is said to be refocusing its attention on major operations, with TD Cowen suggesting the company “could distribute BGS (Boeing Global Services) assets.”
TD Cowen concludes that Boeing’s ability to recover and strategic focus make it a valuable opportunity, saying, “History shows that when BA stocks start to ‘work,’ they can outperform as investors enter the long-term competition.”
