Shares of Boeing (NYSE: NYSE:) had their price target adjusted by TD Cowen, with the new target set at $200, down from the previous $230. Despite concerns over the ongoing IAM strike, the aerospace giant's stock maintains a Buy rating.
TD Cowen analysts suggest that Boeing could mitigate risks through divestiture of non-core assets and securing equity, anticipating a strong recovery in deliveries and free cash flow between 2025 and 2027. The revised price target reflects a 7.2% free cash flow yield for 2026, considering the strike-related risks.
Recent NTSB safety concerns regarding Boeing 737s and ongoing employment issues among suppliers due to the strike have impacted Boeing's operations. However, the company's long-term prospects remain promising, as reaffirmed by TD Cowen's Buy rating.
Analysis and Insights
Despite challenges, Boeing's market capitalization remains significant at $93.68 billion, reflecting its industry presence. However, financial strain is evident with a negative P/E ratio of -33.02 over the last twelve months, indicating profitability challenges.
Boeing's stock is trading near its 52-week low and has experienced a significant price drop in the last three months, with a 3-month price total return of -18.56%. This aligns with TD Cowen's adjusted price target and market reaction to ongoing challenges like the IAM strike.
Investors can find further insights and tips on Boeing's financial position and market performance on InvestingPro. Despite current hurdles, Boeing remains a key player in the Aerospace & Defense industry, supporting expectations of a strong recovery in the coming years.
Overall, investors should consider the cautious yet optimistic outlook on Boeing, balancing risks with potential long-term gains. Stay informed and monitor developments closely to make well-informed investment decisions.
