Boeing stock forecast – is the stock a buy after profitable earnings?

Boeing stock (NYSE:BA) is beginning to gain some bullish traction on Wallstreet as the stock rebounds from the steep COVID-19 sell off in March last year. To add context, Boeing stock collapsed below $100 for the first time since 2013 as the market tumbled.

However, the company shocked investors on Wednesday as Boeing reported their first profitable quarter since the pandemic. Boeing reported earnings beat EPS expectations by producing an EPS of $0.40. In comparison, analyst consensus was forecasting a negative EPS of ($0.83).

Wallstreet institutions are now targeting upside potential in the stock over the next 12 months. In particular, Analyst Noah Poponak at Goldman Sachs raised the firms target price to $307, suggesting an upside of 28.9%.

So let’s breakdown everything investors need to know about the Boeing stock forecast for 2021 and beyond.

Is Wallstreet bullish on Boeing stock?

Firstly, price target valuations from financial institutions can give investors some insight into how Wallstreet views the midterm outlook on a stock. Across the board of 24 Wallstreet analysts, the average 12 month price is $261.38 (an 17.5% upside from the current trading price).

Across Wallstreet, 14 of these analysts have listed a Buy rating on the stock. Goldman Sachs, UBS and the Royal Bank of Canada have listed “street high” targets all above $300.

So what makes these institutions confident the stock will rebound 25% or more over the next 12 months.

Boeing stock forecast

Morgan Stanley boosts target to $274

Morgan Stanley analyst Kristine Liwag boosted the firms 12 month price target to $274 a share. Krtistine noted that the Boeing 737 tracker was showing a substantial increase in domestic flights in April.

The increase in domestic Boeing activity is both a positive for Boeing and the airline industry. The upgraded target represents a healthy upside of 23%.

Goldman Sachs raised Boeing’s stock price target to $307

Analyst Noah Poponak recently maintained the firms Buy rating on Boeing stock with a 12 month price target of $307 a share. The analyst noted that Boeing’s backlog will soon begin to grow as orders pick up and cancellations decline.

Poponak has been a long term bull on Boeing stock. The analyst noted in September last year Boeing stock is a “rare cyclical investment opportunity ahead of eventual end-market improvements” according to theFly.

UBS analysts set street high target for Boeing stock

In late April, Analyst Myles Walton at UBS increased the firms 12 month price target to $310, maintaining a Buy rating. The target remains the highest valuation on Wallstreet.

Walton noted to investors that the effectiveness of the coronavirus vaccine has catalyzed the beginning of an aerospace upcycle according to Benzinga. In addition, Boeing has historically performed extremely well during that early cycle period.

Boeing stock rebounds after positive Q2 earnings

In the second quarter Boeing recorded $16.998 Billion in revenue (YOY increase of 44%). The increase in revenue was driven by higher commercial airplanes and services volume.

In addition, the companies commercial airplane backlog grew to $285 billion with an additional 180 net orders. Boeing was able to deliver 79 commercial airplanes, which was a 295% increase YOY.

“We continued to make important progress in the second quarter as we focus on driving stability across our operations and transforming our business for the future,” said Boeing President and Chief Executive Officer David Calhoun.

Revenue forecast for Boeing stock

Across the board of 21 Wallstreet analysts, the average revenue forecast expects Boeing to generate $78.93 Billion in 2021 (35% annual increase YOY if realised).

To put this figure into perspective, Boeing generated $76.55 Billion in 2019 prior to COVID-19. Therefore, Boeing may beat its pre-pandemic performance assuming demand continues to increase.

Looking further ahead, analysts expect Boeing to capitalise in 2022 with revenue increasing to $89.23 Billion.

The Bottom Line – Boeing stock forecast

In summary, the bullish momentum from Wallstreet is a positive sign for long term investors that held through the sharp dip last year. With revenue expected to beat the 2019 annual performance, we can see why Analyst Noah Poponak is Bullish.

However, further FFA mandated fixes to the 787 Dreamliner may expose the stock to additional volatility. We will continue to update our viewers on Boeing stock as we move through 2021.

Written by Tyger Fitzpatrick, Founder of Youth Investment Group.

The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.

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