Investing.com -- Citi raised its price target on Boeing (NYSE:BA) to $210 from $207, while maintaining its Buy rating on production ramp-ups and improving cash flow expectations.
The firm noted that Boeing’s 737 MAX and 787 production is progressing, with negative margins expected to unwind by 2026. The defense segment is projected to stabilize at high-single-digit margins, while its services unit posted record 19.5% margins in Q4 2024.
Citi expects free cash flow to improve in 2025, turning positive in the second half. Key catalysts include the FAA lifting the 737 production cap, production and delivery improvements, and potential divestitures of non-core businesses.
“Our estimates move higher driven by delivery mix and the expectation that production stabilitywill drive productivity across the company,” Citi analyst said.
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