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Boeing’s Challenging Financial Outlook: Sell Rating Due to Acquisition and Operational Hurdles

Boeing’s Challenging Financial Outlook: Sell Rating Due to Acquisition and Operational Hurdles

Analyst Matthew Akers from Wells Fargo maintained a Sell rating on Boeing (BAResearch Report) and keeping the price target at $103.00.

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Matthew Akers has given his Sell rating due to a combination of factors affecting Boeing’s financial outlook. One key reason is the anticipated acquisition of Spirit AeroSystems, which is expected to have a neutral to slightly negative cash flow impact in the second half of 2025 before potentially contributing positively by 2027. Despite the expected synergies from this acquisition, integration costs and low production rates are likely to be initial financial burdens.
Additionally, Akers remains cautious about Boeing’s overall financial health due to various challenges beyond the acquisition. These include ongoing issues with defense program challenges, delays in the 777X program, rising labor costs following a new union contract, and potential significant investments in new aircraft development later in the decade. Together, these factors contribute to a projection that Boeing’s free cash flow estimates might be overly optimistic, justifying the Sell rating with a price target significantly below the current market price.

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