One Wall Street Analyst Predicts Boeing Stock Could Reach $300

One Wall Street Analyst Predicts Boeing Stock Could Reach 0

If you believe the experts, Boeing (NYSE:BA), a company and stock that has been in the doghouse lately, is about to skyrocket again. An analyst who follows the aerospace giant predicts it will regain significant altitude over the next year. She set a price target on the shares that is nearly 60% above their current level.

Boeing Stock Is A Bargain

Boeing just hasn’t performed well in recent years. It was hit hard by the coronavirus pandemic earlier this decade, with air travel declining precipitously for obvious reasons, and earlier this year saw a embarrassing accident when a door plug on one of its 737-9 MAX planes came loose during a flight. A subsequent quality control investigation by the Federal Aviation Administration revealed production defects at the company.

None of this prevented Jefferies analyst Sheila Kahyaoglu to reiterate her buy recommendation on the stock at the end of March. It also maintained its 12-month price target of $300, which is quite a bold position considering it is 59.5% higher than the target price. aerospace current stock price of the company.

The source of Kahyaoglu’s optimism lies in Boeing’s 787 Dreamliner model. In its latest research note on the company, it wrote that the aircraft “is favorably positioned given its positioning in an expanding wide-body market.” According to her, the 787 alone could generate $2.6 billion in free cash flow (FCF) as early as 2026.

Strong headwinds

The analyst is right to be optimistic about the 787’s prospects, given the travel industry’s strong growth since the coronavirus pandemic and resulting consumer interest in long-haul travel. Still, Boeing has suffered reputational damage that will take some time to overcome, and quality control issues are often neither quick nor easy to resolve. Kahyaoglu’s ambitious price target might simply be too ambitious for this stock over a one-year period.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool holds positions with and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy.

Will Boeing stock hit $300? 1 Wall Street analyst thinks so. was originally published by The Motley Fool

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