Boeing Stock: Buy, Sell, or Hold?
Down more than 30% in 2024 alone, there's no doubt that value investors will be starting to circle 's (NYSE: BA) stock. Indeed, there's a robust case for buying a company that's part of an effective duopoly with Airbus in the global wide-body and commercial narrow-body airplane market. On balance, is the stock a buy? Here's the lowdown.
Boeing bulls accept that the company has had quality control issues but note that Boeing's indispensable role in the aviation industry continues. Despite delivery delays caused by the need to improve production quality in 2024, Boeing still has the potential to grow deliveries. Moreover, given the importance of volume growth on margin expansion to Boeing, hitting delivery targets can significantly increase Boeing commercial airplanes (BCA) margins and profits as it delivers on its backlog of 5,625 airplanes.
In addition, management's free-cash-flow (FCF) target of $10 billion in 2025 to 2026 means the stock trades on just 11.1 times FCF in 2026 -- a startlingly cheap valuation for a stock with such a strong market position in a growing industry.
Source Fool.com
Boeing Co. Stock
The stock is one of the favorites of our community with 37 Buy predictions and 4 Sell predictions.
As a result the target price of 222 € shows a positive potential of 33.27% compared to the current price of 166.58 € for Boeing Co..
