Barclays upgrades Boeing, sees a recovery for the airplane maker after a tough 2024
There’s light at the end of the tunnel for Boeing , according to Barclays. Analyst David Strauss upgraded the aerospace giant to overweight from equal weight, noting he’s positive for the first time since 2019. Strauss also upped his price target by $20 to $210, now reflecting the potential for shares to rally 23.6% over Friday’s close. “We think upside for the stock now mostly relies on sustained positive momentum for production and deliveries, which we believe BA is poised to demonstrate in 2025,” Strauss wrote to clients in a Monday note. “While we don’t see an overwhelmingly compelling upside case on typical valuation metrics, we believe positive momentum on production, deliveries and cash can carry the stock higher.” An improved balance sheet and more reasonable outlook for free cash flow are two drivers of the upgrade, Strauss said. Outside of financials, he pointed to Boeing’s new leadership and hard reset on Max plane production amid controversy as other reasons to have positive expectations. Strauss’ call offers a vote of confidence amid a rough patch for the embattled plane maker. Around a year ago , a reputational crisis began after a door plug blew off an Alaska Airlines plane midflight. Boeing shares have dropped about 4% in 2025, extending last year’s slide of more than 32%. In that vein, Strauss titled his note announcing this rating change “Darkest Before Dawn.” He’s now in the majority on Wall Street with buy-equivalent ratings, per LSEG. BA 1Y mountain Boeing, 1-year Shares popped more than 2% in Monday’s premarket trading following the upgrade. To be sure, Strauss listed the timing of regulatory approval for a production cap and any further delays to certification of certain models as risks to his outlook. He noted that in a negative scenario for the stock, shares could instead tumble more than 26% over the next 12 months.
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