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Boeing (BA) is under pressure, and the clock is ticking. U.S. President Donald Trump made it clear he was unhappy with its long delays in delivering the modified 747 planes for Air Force One. Now, the aerospace giant has found an unexpected helping hand, Elon Musk.
Musk, best known for leading Tesla (TSLA) and SpaceX, also heads the Department of Government Efficiency, or DOGE, created under the Trump administration. Boeing is reportedly working closely with Musk to meet strict requirements and finally deliver the long-awaited jets. With a billionaire innovator now in the mix, Boeing is gaining momentum.
About Boeing Stock
With its headquarters in Arlington, Virginia, Boeing (BA) is one of the largest defense contractors in the U.S. With a market cap of roughly $129.7 billion, its customer base spans domestic and international airlines, as well as government agencies like the Department of Defense and the Department of Homeland Security.
The past three months have been a boon for BA. While the broader S&P 500 Index ($SPX) dipped 2% during this period, BA surged an impressive 14.4%, signaling investor confidence.
The stock currently trades at 2.01 times sales, surpassing the sector median of 1.57x and its own five-year average of 1.70x. This premium valuation underscores the market’s faith in BA’s long-term growth potential.
Boeing’s Mixed Q4 Earnings
Boeing reported its fourth-quarter 2024 results on Jan. 28, meeting Wall Street’s revenue expectations. The aerospace and defense giant posted revenue of $15.24 billion, slightly above analyst estimates of $15.20 billion. However, this marked a steep 30.8% year-over-year drop. More concerning was its non-GAAP loss of $5.90 per share, which not only missed analyst expectations by an overwhelming 83.2% margin, but also widened significantly from the year-ago quarter’s loss of $0.47 per share.
As expected, Boeing faced turbulence in the fourth quarter as labor strikes took a toll on its operations. The two-month work stoppage by the International Association of Machinists and Aerospace Workers (IAM) hit hard, causing delivery delays in the Commercial Airplanes segment and weighed on the company’s results. Yet, despite the tough quarter, Boeing remains anchored by a solid $521 billion backlog in 2024.
This includes over 5,500 commercial aircraft orders valued at $435 billion, signaling long-term revenue potential. Management continues working on stabilizing operations, ensuring safe and timely aircraft deliveries, and resolving certification challenges with the FAA, particularly for the 777X and 737 models. Meanwhile, analysts project the company’s loss to narrow 87.3% year over year in fiscal 2025 and improve by another notable 204.3% in fiscal 2026.
What Do Analysts Expect for Boeing Stock?
It looks like BA still has strong support from analysts despite its recent struggles. BA received a price target increase from Citigroup to $210 from $207, citing efforts to boost 737 MAX and 787 production and expectations for negative margins to ease by 2026.
Among 25 analysts, 16 rate BA as a “Strong Buy,” one as a “Moderate Buy,” seven as a “Hold,” and one as a “Strong Sell.” The consensus rating is “Moderate Buy.” BA’s average analyst price target of $201.43 represents potential upside of 16.4%, while the Street-high target of $250 suggests that the stock can climb as much as 44.5% from here.
