BNP Paribas analyst Matt Akers double-upgraded Boeing stock from underperform to overperform on Monday, citing stronger cash flow and a second-quarter report that beat topline expectations. The firm set a $300 price target and lifted its 2027 free cash flow forecast to $7 billion. Boeing shares rallied more than 5% on the call, though some analysts, including Deutsche Bank, remain cautious.
Boeing shares rallied more than 5% Monday morning, according to MarketSurge, after BNP Paribas aerospace analyst Matt Akers handed the stock an unusual double upgrade, moving his rating straight from underperform to overperform.
The call followed last week's mixed second-quarter earnings report. Boeing delivered more planes and grew its topline ahead of Wall Street's expectations, but net income stayed in the red, missing earnings views. The standout figure was cash flow of $631 million, against an expected cash burn of $388 million, according to FactSet.
Akers Sees Cash Flow Turning A Corner
Akers said most Wall Street forecasts for Boeing's cash flow over the next couple of years had been too low after years of downward revisions. According to BNP Paribas analyst Matt Akers: "Our number are now moving in the opposite direction." He now forecasts free cash flow of $7 billion in 2027, about $1.4 billion above his earlier estimate and $1 billion above the consensus view.
BNP Paribas set a $300 price target on Boeing, which assumes a 35% increase from Monday's opening price of 221.
Production Ramp-Up Continues Under Ortberg
Boeing is in the midst of a yearslong turnaround under CEO Kelly Ortberg after a series of safety mishaps led regulators to cap its production rates. As of late May, Boeing had raised production of its 737 MAX to 47 units a month, with plans to lift that rate to 52 by early 2027. The company also expects to raise 787 widebody production to 10 units a month by year-end, up from eight.
Akers wrote that the post-COVID period of uncertainty for Boeing is over, adding that upcoming 737 and 777X certifications should drive inventory liquidation and operational stability over the next year. Boeing's 737 and 787 output is expected to generate about $2 billion in cash flow from 2026 to 2027, Akers estimated, with another roughly $1 billion arriving once the company sells its current inventory of 60 737 aircraft.
Not Every Analyst Is Convinced
Wall Street's view of Boeing remains split. Most analysts have gotten behind the recovery, but some firms still rate the stock a hold, arguing Boeing remains an industry laggard. Deutsche Bank analyst Scott Deuschle wrote that the firm continues to see suppliers as offering better risk-reward than Boeing itself.
Boeing stock has been roughly flat in 2026, down about 0.5% for the year, and has largely held support at its 200-day moving average, which is now converged with its 50-day line. Shares jumped 4.8% on July 28, the day Boeing reported earnings, and rose more than 3% last week. Monday's move lifted the stock back above both its 50-day and 200-day lines in heavy trading volume.
BNP Paribas expects Boeing's cash flow figures to eventually push shares out of the $150-to-$250 range they have held for the past several years, with Akers projecting shares could reach $450 by 2030. Boeing carries a Composite Rating of 48 out of 99, according to IBD's analysis.
Source: Investor's Business Daily
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