Boeing Stock Surges 2.1% as Bank of America Upgrades to Buy

The Trump administration has recently shown strong support for Boeing (BA.US) by including the company in ongoing trade negotiations. This move has significantly influenced the financial sector's perception of the aerospace giant, leading to a notable shift in its stock rating. In response, Bank of America Securities has upgraded its rating for Boeing from "neutral" to "buy," reflecting a renewed confidence in the company's future prospects.

Analyst Ronald Epstein highlighted that Boeing aircraft have become a "preferred trade tool" in recent U.S. trade negotiations, a trend that is expected to continue. Epstein noted several positive factors, including a record purchase order from Qatar Airways and the lifting of the delivery ban on Boeing aircraft by China, which are creating favorable conditions for the stock. Epstein's upgrade of Boeing's stock rating to "buy" is accompanied by a substantial increase in the 12-month target price from $185 to $260, which is the highest forecast on Wall Street and approximately 25% higher than the current stock price. This news has already boosted Boeing's stock price, which rose by 2.1% on Monday.

Despite a more than 50% rebound from its April low, Boeing's stock has yet to fully recover from the significant drop caused by the 737 Max aircraft incident in early 2024. This incident had severely shaken market confidence in the company's safety record. However, under the leadership of new CEO Kelly Ortberg, Boeing is gradually overcoming its "cycle of misfortune." The production process for the 737 model has been continuously improving, and analysts expect further transactions, such as the $1.06 billion asset sale in April, to alleviate the company's financial pressures.

As one of the world's two largest commercial aircraft manufacturers, Boeing has long been at the center of trade negotiations. During Trump's first term, investors often used Boeing's stock price as a barometer for the U.S.-China trade dispute. In the latest round of trade tensions, Boeing's stock price has once again experienced significant volatility. Notably, during Trump's recent visit to the Gulf states, the procurement agreement with Qatar Airways became a focal point, with the president personally congratulating Boeing on securing the largest single aircraft order in history.