Investing.com -- Wolfe Research raised its price target on Boeing (NYSE:BA) to $230 from $195 in a note Thursday, citing a major new order from Qatar Airways and growing confidence in the company’s production and cash flow recovery.
The firm reiterated its Outperform rating on the stock. "A Big Beautiful Order should help (not yet) big beautiful cash flow," said Wolfe Research.
The price target raise follows a roughly $100 billion agreement between Boeing and Qatar Airways for up to 210 widebody jets—160 firm orders and 50 options—announced during President Trump’s visit to the Gulf state.
“This comes after IAG’s decision to buy 787/777X, which we expect in backlog in June/July,” Wolfe Research wrote in a note to clients.
The Qatar order includes 120 787s and 30 777X aircraft, with 150 of them considered incremental to Boeing’s backlog.
Wolfe analysts said these additions are “accompanied by healthy deposits that were not previously in management’s thinking for 2025.”
Wolfe now estimates the order adds $600 million to $1 billion to Boeing’s second-quarter results, and they increased their 2025 free cash flow (FCF) estimate by $1 billion.
“We’re now modeling a FCF use of ~$3B, down from ~$4B previously,” analysts said, adding that the price target revision reflects a rolled valuation based on 2027 projections.
The firm also addressed concerns around the pace of 737 MAX deliveries in May, attributing the slowdown to a “software upgrade and no new manufacturing issues.” Wolfe noted encouraging first flight data that supports a production rate of over 30 aircraft per month.
Looking ahead to the Paris Air Show in June, Wolfe highlighted that Boeing stock has historically outperformed the S&P 500 by about 300 basis points in the lead-up to the event.