Boeing
BA
$208.87
+1.56%
Boeing is a global aerospace and defense leader, operating through three primary segments: Commercial Airplanes, Defense, Space & Security, and Global Services. As one of only two major manufacturers of large commercial aircraft, Boeing holds a duopoly position with Airbus, while its defense unit competes with the likes of Lockheed Martin and Northrop Grumman. The current investor narrative centers on the recent FAA certification of the 737 MAX 7, which unlocks deliveries and revenue, alongside a strategic acquisition of Boeing's defense and aviation units by Archer Aviation, signaling a potential reshaping of its portfolio. However, the stock remains under pressure from lingering production challenges, high debt levels, and mixed financial performance, making it a focal point for debate on its recovery trajectory.…
BA
Boeing
$208.87
Related headlines
BA 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Boeing's 12-month outlook, with a consensus price target around $274.04 and implied upside of +31.2% versus the current price.
Average Target
$274.04
0 analysts
Implied Upside
+31.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$246 - $305
Analyst target range
Boeing is covered by 26 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.54 (where 1 is Strong Buy and 5 is Sell). The average target price is $274.85, implying an upside of 31.0% from the current price of $209.82. The distribution shows a bullish sentiment, with 10 recent ratings from firms like Citigroup, Morgan Stanley, and UBS all maintaining Buy or Overweight ratings. The target price range spans from $246.00 (low) to $305.00 (high), with the high target assuming successful execution of the 737 MAX 7 ramp-up and defense contract wins, while the low target reflects risks from production delays and high debt. The wide spread of $59 between low and high targets indicates significant uncertainty, but the overall consensus leans positive, suggesting analysts see the current price as an attractive entry point.
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Bulls vs Bears: BA Investment Factors
Boeing presents a classic turnaround opportunity with strong analyst support (31% upside) and a valuation near historical lows, but it carries significant financial and operational risks. The bull case hinges on successful execution of the MAX 7 ramp-up and defense contracts, while the bear case focuses on high debt, thin margins, and persistent underperformance. Currently, the evidence slightly favors the bulls due to the valuation discount and positive catalysts, but the outcome depends on whether Boeing can translate revenue growth into sustainable profitability. The most critical tension is whether the company can achieve the earnings growth implied by its forward PE of 50.9x, which will determine if the stock re-rates upward or faces further de-rating.
Bullish
- FAA Certification of 737 MAX 7: The FAA certified the 737 MAX 7 in August 2026, a major milestone that unlocks deliveries and revenue for Boeing's key commercial aircraft. This is expected to drive significant revenue growth, with Q1 2026 revenue already up 13.96% YoY to $22.22 billion.
- Analyst Consensus is Strong Buy: With 26 analysts, the consensus rating is 'Buy' with a mean rating of 1.54 (1=Strong Buy, 5=Sell). The average target price of $274.85 implies a 31.0% upside from the current price of $209.82, indicating analysts see significant value.
- Valuation at Historical Low: The PS ratio of 1.85x is near the bottom of its historical range of 4.5x-8.5x over the past two years, and below the industry average of 2.07x. This suggests the market is pricing in a pessimistic outlook, offering a potential value opportunity if the turnaround succeeds.
- Defense Segment Secures Major Contracts: Boeing's Defense, Space & Security segment generated $7.60 billion in Q1 2026 revenue, and recent news highlights a $1 billion+ USAF satellite contract. This provides a stable revenue stream and diversification from commercial aviation.
Bearish
- High Debt and Leverage: Boeing's debt-to-equity ratio is extremely high at 9.98, and interest expense was $616 million in Q1 2026. This leverage increases financial risk and limits flexibility, especially if cash flows remain weak.
- Weak Profitability and Thin Margins: Q1 2026 net income was -$4 million, with a gross margin of only 11.46% and operating margin of 2.01%. The company is barely breaking even, and the trailing twelve-month free cash flow is negative at -$1.04 billion.
- Negative Relative Strength: Boeing's stock has underperformed the S&P 500 by 29.71% over the past year, with a 1-year price change of -11.15% vs. +18.56% for the S&P. This persistent underperformance reflects ongoing investor skepticism.
- High Valuation on Forward Earnings: The forward PE of 50.92x is elevated, implying the market expects significant earnings growth. If the company fails to deliver, the stock could face multiple compression, leading to further downside.
BA Technical Analysis
Boeing's stock is in a clear downtrend over the past year, with a 1-year price change of -11.15%, while the S&P 500 has gained 18.56% over the same period, resulting in a relative strength of -29.71%. The current price of $209.82 sits at 37.5% of the 52-week range (between $176.77 low and $254.35 high), indicating the stock is closer to its lows than its highs. This positioning suggests a bearish sentiment, with the stock trading below its mid-range, reflecting persistent selling pressure and a lack of conviction among buyers.
Beta
1.22
1.22x market volatility
Max Drawdown
-25.0%
Largest decline past year
52-Week Range
$177-$254
Price range past year
Annual Return
-12.0%
Cumulative gain past year
| Period | BA Return | S&P 500 |
|---|---|---|
| 1m | -10.5% | +1.0% |
| 3m | -3.9% | +1.1% |
| 6m | -9.6% | +13.8% |
| 1y | -12.0% | +19.5% |
| ytd | -8.3% | +12.2% |
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BA Fundamental Analysis
Boeing's revenue has shown a mixed trajectory, with Q1 2026 revenue of $22.22 billion, up 13.96% year-over-year, but this follows a volatile pattern: Q4 2025 revenue was $23.95 billion, Q3 2025 was $23.27 billion, and Q2 2025 was $22.75 billion. The growth is driven by the Commercial Airplanes segment, which generated $9.20 billion in revenue, and Global Services at $5.37 billion, while Defense, Space & Security contributed $7.60 billion. However, the company's profitability remains weak, with a net loss of $4 million in Q1 2026, a gross margin of 11.46%, and an operating margin of 2.01%, indicating that despite revenue growth, margins are thin and the company is barely breaking even.
Quarterly Revenue
$22.2B
2026-03
Revenue YoY Growth
+14.0%
YoY Comparison
Gross Margin
11.5%
Latest Quarter
Free Cash Flow
$-1.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is BA Overvalued?
Given Boeing's negative net income in the most recent quarter, the price-to-sales (PS) ratio is the most appropriate valuation metric, currently at 1.85x, which is below the industry average of 2.07x (EV/Sales). This suggests the stock is trading at a slight discount to its sector, but the discount is not substantial given the company's weak profitability. The forward PE of 50.92x implies that the market expects significant earnings growth, but the trailing PE of 87.20x is distorted by the recent losses, making the PS ratio a more reliable indicator. Historically, Boeing's PS ratio has ranged from 4.5x to 8.5x over the past two years, so the current 1.85x is near the bottom of its historical range, indicating that the market is pricing in a pessimistic outlook, potentially offering a value opportunity if the company can execute on its turnaround.
PE
87.2x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
28.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are substantial: Boeing's debt-to-equity ratio of 9.98 indicates extreme leverage, and interest expense of $616 million in Q1 2026 consumes a significant portion of operating income. The company's net income was -$4 million, and free cash flow is negative at -$1.04 billion TTM, meaning it is burning cash. This financial fragility could lead to liquidity issues if revenue growth stalls or costs escalate. Additionally, the gross margin of 11.46% is thin, leaving little room for error in production costs or pricing pressures.
