Where Will Boeing Be in 3 Years?
The medium-term outlook is critical for (NYSE: BA) investors because nobody is buying the stock for what it is now, but rather what it could become. Management has long-established medium-term guidance, and investors are inevitably penciling it into valuations and monitoring the key milestones to hit it. Here's a look at what it is and some thoughts about what it means to the investment proposition.
Management laid out its 2025/2026 targets at its investor day presentation in November 2022. The key parts of the plan involve a multiyear increase in airplane production, notably the 737 narrowbody, and a significant increase in Boeing defense, space, and security (BDS) profit margins, leading to $12 billion in segment operating cash flow. After $2 billion in capital spending is taken out, Boeing expects $10 billion in free cash flow (FCF) in the 2025/2026 timeframe.
Three things stand out to me related to these goals and where it stands today:
Source Fool.com
Boeing Co. Stock
The stock is one of the favorites of our community with 38 Buy predictions and 4 Sell predictions.
As a result the target price of 221 € shows a positive potential of 28.37% compared to the current price of 172.16 € for Boeing Co..
