Boeing Co (NYSE:BA, XETRA:BCO) continues to show incremental progress in its operational turnaround, according to Bank of America who maintain a positive stance on the aircraft manufacturer despite ongoing execution challenges and a recovery path that remains uneven.
The firm reiterated its ‘Buy’ rating and $270 price objective, writing that Boeing’s “core operational trajectory remains positive,” even as the analysts cautioned that the turnaround “is by no means complete” and is unlikely to follow a linear path.
They added that they remain “pleased with the progress and ability to manage headwinds thus far,” characterizing recent developments as steady, if gradual, improvement.
Bank of America highlighted improving performance across Boeing’s key segments. Boeing Global Services was described as the company’s most “reliable” earnings contributor, continuing to deliver stable growth.
In defense and space, analysts pointed to longer-term support from munitions replenishment demand, including PAC-3 seekers, as well as potential upside from programs such as the F-47, KC-46, and F-15EX, which they noted are “well supported in the fiscal year 2027 President Budget Request.”
The commercial aircraft division remains central to the investment thesis. The analysts wrote that Boeing Commercial Airplanes is “continuing to stabilize production across programs,” with greater clarity emerging around future production rate increases.
They see the most meaningful upside in this segment after 2028, as post-pandemic aircraft orders, expected to benefit from improved pricing, rise to more than 30% of total deliveries.
On the 737 MAX program, Bank of America said production has stabilized at about 42 aircraft per month. While a first-quarter wiring issue delayed roughly 25 aircraft, the analysts expect those deliveries to shift into the second quarter. They estimate Boeing will deliver 508 MAX aircraft in 2026, modestly above the company’s outlook of around 500.
The firm remains constructive on a move to 47 aircraft per month in the third quarter, though it is more cautious on reaching 52 per month before 2028, citing the time required for labor expansion, training, and regulatory approval. Any production above 47 per month is expected to be built at the Everett North Line facility, which is scheduled to begin low-rate initial production in 2026.
The 787 program continues to ramp toward 10 aircraft per month, though seat certification delays weighed on near-term deliveries. Bank of America estimates 100 Dreamliner deliveries, consistent with Boeing’s guidance range of 90 to 100 aircraft.
Cash flow trends showed improvement, though remained negative. The analysts wrote that Boeing is “still burning, but the fire is getting (relatively) smaller,” with free cash flow burn improving to $1.45 billion in the quarter.
The company maintained its outlook for full-year 2026 free cash flow of $1 billion to $3 billion. Bank of America expects a $511 million cash burn in the second quarter, followed by a recovery in the second half of the year driven by KC-46 advances and higher commercial deliveries, resulting in an estimated full-year 2026 free cash flow of $2.55 billion.
The $270 price objective is based on normalized free cash flow of $11 per share and a valuation multiple tied to the S&P 500 at roughly 1.0 times 2027 estimates, unchanged from prior assumptions.
Shares of Boeing traded at about $230 on Friday.