Boeing (BA) shares rallied over 2% on Monday after Bank of America issued a bullish upgrade, raising the aerospace giant to a Buy.
The bank also hiked its price target to $260—now the most optimistic forecast on Wall Street.The move reflects growing confidence that Boeing’s long-awaited turnaround is not just underway, but accelerating.
The new price target represents a significant jump from BofA’s prior forecast of $185 and implies a potential free cash flow of $9 per share—a strong signal of expected financial health. In a note that underscored the shift in sentiment, BofA analysts wrote: “We once compared Boeing’s performance to a Greek tragedy. But the narrative has changed.”
At the heart of that transformation is CEO Kelly Ortberg, who took the reins last August and has since orchestrated a sweeping stabilization campaign—ranging from labor negotiations and safety upgrades to renewed discipline in forecasting and production.
Production Recovery, Trade Tailwinds, and a Revived Defense Unit
Boeing has made substantial progress on three critical fronts: aircraft production, defense profitability, and trade leverage.
The narrow-body 737 MAX is approaching a production rate of 38 jets per month—the cap set by the Federal Aviation Administration following a 2024 safety incident. Ortberg and CFO Brian West say Boeing expects to hit that milestone “within months,” and plans to increase it to 42 by year-end, with additional gains every six months.
On the wide-body front, the 777X is still on track for a 2026 debut, with Emirates and Lufthansa both confirming delivery expectations. Meanwhile, the FAA review to lift 787 production from five to seven jets per month was reportedly well-received—another encouraging sign.
Boeing’s defense segment is also regaining momentum after years of losses. The unit turned a profit in Q1, and internal estimates show margin improvement across its core and fighter jet operations. The most troubled 15% of its defense business—fixed-price contracts—is beginning to show “EAC stability,” a key cost-forecasting metric, thanks to enhanced oversight.
Boeing has made substantial progress on three critical fronts: aircraft production, defense profitability, and trade leverage.
The narrow-body 737 MAX is approaching a production rate of 38 jets per month—the cap set by the Federal Aviation Administration following a 2024 safety incident. Ortberg and CFO Brian West say Boeing expects to hit that milestone “within months,” and plans to increase it to 42 by year-end, with additional gains every six months.
On the wide-body front, the 777X is still on track for a 2026 debut, with Emirates and Lufthansa both confirming delivery expectations. Meanwhile, the FAA review to lift 787 production from five to seven jets per month was reportedly well-received—another encouraging sign.
Boeing’s defense segment is also regaining momentum after years of losses. The unit turned a profit in Q1, and internal estimates show margin improvement across its core and fighter jet operations. The most troubled 15% of its defense business—fixed-price contracts—is beginning to show “EAC stability,” a key cost-forecasting metric, thanks to enhanced oversight.
From Troubled Giant to Trade Powerhouse
Perhaps most intriguing for investors is Boeing’s emerging role in U.S. trade policy. Bank of America flagged recent aircraft orders from the UK, Qatar, UAE, and China as signs that Boeing is becoming a go-to instrument in international dealmaking. A series of large jet orders and China’s recent decision to lift a ban on Boeing deliveries point to the company’s renewed value on the geopolitical stage.
“Boeing aircraft have emerged as a favored trade mechanism,” wrote BofA analyst Ronald Epstein. That status could yield long-term upside, especially with the Trump administration signaling continued use of aerospace deals in trade talks.
Ortberg added fuel to the rally last week at the Bernstein investor conference, confirming that Chinese jet deliveries are expected to resume in June and highlighting Boeing’s path toward 737 MAX production stability. After hitting a low of $128.88 in April, Boeing stock has soared nearly 63%, closing Monday at $211.85.
Perhaps most intriguing for investors is Boeing’s emerging role in U.S. trade policy. Bank of America flagged recent aircraft orders from the UK, Qatar, UAE, and China as signs that Boeing is becoming a go-to instrument in international dealmaking. A series of large jet orders and China’s recent decision to lift a ban on Boeing deliveries point to the company’s renewed value on the geopolitical stage.
“Boeing aircraft have emerged as a favored trade mechanism,” wrote BofA analyst Ronald Epstein. That status could yield long-term upside, especially with the Trump administration signaling continued use of aerospace deals in trade talks.
Ortberg added fuel to the rally last week at the Bernstein investor conference, confirming that Chinese jet deliveries are expected to resume in June and highlighting Boeing’s path toward 737 MAX production stability. After hitting a low of $128.88 in April, Boeing stock has soared nearly 63%, closing Monday at $211.85.
Outlook: On the Right Track, but Not at the Finish Line
Despite the positive developments, analysts warn that trust between Boeing and regulators, customers, and investors remains fragile. The FAA must still approve higher production rates, and the company’s ability to consistently deliver jets at scale—without new safety issues—will remain under scrutiny.
Boeing hasn’t posted a full-year profit since 2018, and investors are watching closely to see if Ortberg can lead the company into sustained profitability. Forecasts for 2026 call for about 700 jet deliveries, $4 billion in net income, and roughly $8 billion in free cash flow.
For now, the direction is clear—and for the first time in years, it’s pointing up. With 69% of analysts rating Boeing a Buy and investor sentiment improving, Wall Street appears to believe Boeing’s comeback is more than just talk.
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