Bank of America analysts have reiterated a ‘Buy’ rating and a $270 price objective for Boeing Co (NYSE:BA, XETRA:BCO), describing the company’s current path as "an execution story that has wings."
The bank wrote in a note that while the fourth quarter of 2025 highlighted several industrial obstacles, the planemaker's fundamental recovery remains solid.
They noted that the 737 and 787 programs are showing stability as production rates ramp up. Further, the analysts expressed optimism regarding certification progress for the 737-10 and 777-9, which they viewed as a positive sign for the company's core programs.
Bank of America anticipates that Boeing will deliver 504 737 MAX jets and 100 787 Dreamliners in 2026, supported by a record commercial backlog of $567 billion.
"BA’s path to recovery remains fundamentally solid though Q4 2025 emphasized that it is not without hurdles," they wrote, pointing to margin pressures from the Spirit AeroSystems reintegration and a new charge related to the KC-46 defense program.
According to the analysts, the "quick fixes" to Boeing's narrative, such as the major leadership changes under CEO Kelly Ortberg and CFO Jay Malave, have largely been exhausted. Moving forward, the stock's performance will likely depend on hitting specific industrial targets.
"Incremental production and certification milestones are the most likely near-term triggers for price discovery," the bank's analysts wrote. Key milestones to watch include stabilizing 737 production at 47 units per month and 787 production at 10 per month by 2026.
Cash flow remains a central focus for the bank’s valuation. While BofA lowered its 2026 free cash flow estimate to $3,019 million from a prior $3,663 million, it remains confident in Boeing’s long-term trajectory toward a $10 billion annual target.
"As BA continues to work toward its long-term $10 billion objective, we see opportunity to surpass that level in 2031,” the analysts wrote.
The firm’s $270 price objective is based on a normalized free cash flow of $11 per share and implies upside from current levels of about $232.