Wolfe lifts Boeing PT saying stock drop post Q2 overlooks cash flow improvement
Investing.com --Wolfe Research stuck to its Outperform rating on Boeing (NYSE:BA) while bumping its price target by $10 to $250, saying the 4% decline in shares after its second-quarter results appears out of step with improvement in the company’s full-year free cash flow outlook.
Boeing now expects to burn $3 billion in cash in 2025, compared with earlier guidance of $4–5 billion. That marks a 15% improvement versus consensus.
Second-quarter free cash flow also beat expectations by $2 billion, aided by stronger deliveries and order activity.
Still, shares fell after the results, which Wolfe attributed to softer second-half guidance, delays in certification of the MAX 7 and 10, and slower-than-expected production increases.
But the firm said the long-term $10 billion free cash flow target remains intact and sees operations moving in the right direction.
Quarterly revenue rose 35% year-on-year to $22.7 billion, led by defense and commercial segments. Core earnings per share came in at a loss of $1.24, narrower than the consensus loss of $1.40 but wider than Wolfe’s analyst estimate.
Boeing guided to a $900 million cash outflow in the third quarter, partly due to a potential settlement with the U.S. Department of Justice, followed by positive free cash flow in the fourth quarter.
The company is producing 787 jets at a rate of seven per month and plans to request approval to raise 737 output to 42 per month later this year.
Wolfe said 2026 and 2027 free cash flow estimates remain mostly unchanged but sees room for upside as deliveries increase and production stabilizes.
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