Key Takeaways
- Boeing shares moved higher Monday after the manufacturer got an upgrade from Bernstein analysts.
- The analysts said on Sunday that after its latest quarterly report last week, Boeing is back on the track they had expected prior to the company’s January 2024 door-plug incident.
- Spirit AeroSystems Holdings and Boeing competitor Airbus agreed to a deal Monday, paving the way for Boeing to reacquire the supplier.
Boeing (BA) shares rose Monday after the plane maker got two pieces of good news: Its stock was upgraded by Bernstein analysts, and its deal to reacquire Spirit AeroSystems Holdings (SPR) cleared another hurdle.
Bernstein analysts on Sunday upgraded Boeing stock to “outperform,” with a price target of $218, up from $181 previously. That puts Bernstein analysts in line with eight others rating Boeing as a “buy,” compared with three “hold” ratings, according to Visible Alpha data. Their new price target is above the $196.10 analyst consensus.
Boeing ‘Making the Progress’ Analysts Expected Before January 2024 Door-Plug Incident
The analysts said that after Boeing’s latest quarterly report last week, the company is “now making the progress it needed for the growth trajectory we expected” prior to the early 2024 incident in which a door plug detached from a Boeing plane in mid-flight.
“The heavy [Federal Aviation Administration] scrutiny on Boeing operations should insure a much more solid operational process at [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
Early Monday, Spirit AeroSystems and Airbus announced an agreement for Airbus to take control of some of Spirit’s operations that manufacture parts for Airbus. When Boeing announced plans to reacquire Spirit as part of its strategy to solidify the safety of its supply chain, rival Airbus said in 2024 that it would take control of certain assets so it wasn’t reliant on its largest competitor 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 were up about 2% to $182 at close. Monday appears likely to be Boeing’s fifth-straight winning session, a streak that has brought the stock back into positive territory for the last 12 months.
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