Despite all its issues over the last few years, there's still a robust case for buying (NYSE: BA) stock. After all, it's still one of only two truly global players in the commercial airplane market and has a $529 billion backlog in place, while continuing to win orders (125 net orders in the first quarter). Is it enough to justify buying the stock? Here's the lowdown.
Investors listen when management lays out medium-term targets. As soon as it does so, investors begin penciling in valuation assumptions. Since everyone knows this, management tends to lay out targets it can meet, and investors closely monitor progress toward the targets.
As such, when Boeing's management laid out its target for $10 billion in free cash flow (FCF) in the 2025/2026 timeframe, it's fair to say everybody expected Boeing to meet the target. The debate was over the timing: Early 2025 or late 2026?
Source Fool.com