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Key Takeaways
- Boeing shares rose Monday after Bernstein analysts upgraded the manufacturer.
- Analysts stated on Sunday that following its latest quarterly report from last week. Boeing is back on the track they had expected prior to the company's January 2024 door-plug incident.
- Spirit AeroSystems Holdings, a competitor of Boeing, and Airbus reached a deal on Monday that will allow Boeing to repurchase the supplier.
Boeing (BA), the plane manufacturer, saw its shares rise Monday after two positive developments: Bernstein analysts upgraded its stock and the deal to reacquire Spirit AeroSystems Holdings Holdings SPR cleared another hurdle.
Bernstein analysts upgraded Boeing’s stock to “outperform”, with a price goal of $218. The previous price target was $181. Visible Alpha data shows that Bernstein analysts are in line with eight other analysts who rate Boeing as a “buy”, compared to three “hold” ratings. Their new target price is higher than the $196.10 analyst consensus.
Boeing 'Making the Progress' Analysts Expected Before January 2024 Door-Plug Incident
Analysts stated that Boeing is “now making progress for the growth trajectory expected” following its latest quarterly report released last week. This was before the incident in early 2024, when a door plug came loose from a Boeing aircraft in midflight.
"The heavy [Federal Aviation Administration] Boeing operations should be scrutinized to ensure a more solid operational process. [Boeing Commercial Airplanes]," the analysts wrote. "Of course, this positive outlook is not without risks. But, we believe the key factors strongly outweigh the risks at this point."
Spirit AeroSystems, Airbus Reach Agreement
Airbus and Spirit AeroSystems announced a deal early Monday morning that would allow Airbus to take over some of Spirit’s operations which manufacture parts for Airbus. Airbus announced in 2024, that it would take over certain assets to ensure it was not reliant on Boeing for parts.
Jefferies analysts wrote Monday that the Airbus agreement "opens the way" for Spirit's reintegration with Boeing to close as expected, likely by the third quarter of this year.
Boeing shares closed at $182, up about 2%. Monday looks like Boeing’s fifth straight winning session. The streak has helped the stock return to positive territory in the last 12 month.
