Trade wars, recession worries and broad market uncertainty sent the Dow Jones Industrial Average down 4.6% for the week through Thursday. The S&P 500 shed 4.3%. In the shadow of those losses, AI-play Nvidia rebounded 2.7% this week. Boeing stock is outpacing those gains as shares push off 2025 lows and toward their first weekly advance in four weeks. But Citi expects more dramatic gains from the aerospace giant.
Boeing rebounded 3.3% for the week through Thursday, after falling to a low for the year of 145.45 intraday on Monday. Shares rose the past three days.
Meanwhile, analysts at Citi believe that Boeing stock is far too cheap at its current levels, according to a Thursday research note reported by The Fly. Citi said the market is undervaluing Boeing's long-term growth potential. The stock is currently pricing in less than 1% free cash flow growth. But Citi analysis indicates the airplane manufacturer could achieve a 3% growth rate, based on anticipated growth trends in the commercial aerospace and defense end markets. A 3% growth rate translates to a potential 50% upside to Boeing's current share prices, Citi wrote.
The firm maintained its buy rating and 210 price target on Boeing stock — about 32% above where shares traded on Thursday.
Boeing Stock
Boeing ticked up Thursday after the report.
Boeing is down about 10% so far this year and trading well below key levels of technical support.
BA stock has a 21-day ATR of 3.73%. The average true range is a metric available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3 or below.
NVDA stock eased a fraction on Thursday, now down 13.8% for the year. Shares are still trading below their 21-day exponential moving average and other technical lines. Nvidia's ATR is 5.53%.
The current market is not a healthy environment for setting up new positions or adding to existing stock holdings. IBD's Stock Market Exposure guide currently recommends investors have a maximum of 20% of their capital invested. Now is a good time to build watchlists and wait for a follow-through day to launch a new uptrend.
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