RBC Reiterates Outperform Rating on The Boeing Company (BA), Raises PT to $230

The Boeing Company (NYSE:BA) is one of the best wide moat stocks to buy now. On June 9, RBC Capital Markets maintained an Outperform rating on Boeing and lifted the price target from $200 to $230. RBC analyst Ken Herbert noted positive solid market sentiment ahead of an upcoming airshow and a solid estimate for future free cash flow (FCF) as the primary contributors to Boeing’s stock performance.

The company management as of late issued optimistic statements about the 737 MAX aircraft, and the projected widebody deliveries for May seemed robust. Moreover, Boeing’s forecasted free cash flow for 2027-2028 is expected to fall between  $10-$12 billion, which can potentially improve investor sentiment.

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Despite the favorable outlook, the analyst pointed out that the capacity of the supply chain to maintain larger production rates poses a huge risk for The Boeing Company (NYSE:BA). However, the projected shift to a production rate of 42 units monthly for the 737 MAX is considered viable given the presently towering inventory levels.

The updated price target at $230 is calculated by applying 21.1x multiple to RBC Capital Markets’ 2027 FCF projection for Boeing of approximately $8.5 billion. This revision demonstrates RBC’s confidence in Boeing’s financial stability and its strategic place in the aerospace market. In the future, investors will closely monitor the company’s stock performance and growth prospects as it navigates the challenges related to aircraft manufacturing and supply chain management.

The Boeing Company (NYSE:BA) is an aerospace and defense giant that designs, manufactures, and supports a diverse portfolio including commercial jets, military aircraft, satellites, and advanced space systems.

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