BofA Securities analyst Ronald J. Epstein reiterates a Neutral rating, with an unchanged price target of $225 on Boeing Co (NYSE:BA) and revised estimates following its 737 production halt.
The analyst says that the freezing of 737 production by the FAA will put significant pressure on Boeing’s 2025/2026 production and FCF targets.
However, the forced slowdown will ultimately benefit Boeing in the long term, and the resulting stronger production system will drive 737 rates beyond 50 more effectively with less rework, writes the analyst.
Also, the analyst expects the strong demand & duopoly to support mid-term market share.
Consequently, the analyst raised EPS estimates to $0.70 from $0.25 in FY24 and $6.55 from $6.35 for FY25 while lowering forecasts to $8.90 from $9.15 in FY26.
Today, Boeing shares dipped as it reportedly discovered new quality defects in its 737 Max airplanes.
Last month, Boeing reported a fourth-quarter revenue increase of 10% year-over-year to $22.02 billion, beating the consensus of $21.10 billion. Adjusted loss per share contracted to $(0.47) from $(1.75) in same quarter 2022, beating the consensus of $(0.78).
Boeing’s CEO Dave Calhoun says the full focus is on taking comprehensive actions to strengthen quality at Boeing.
Related: Boeing CEO Dave Calhoun Has A Clear Message For Everyone: ‘Boeing Owns It’
Price Action: BA shares are down 1.98% at $205.24 on the last check Monday.
Photo Courtesy: Tada Images On Shutterstock.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
