Boeing stock hits new 15-month high following Bank of America upgrade

BA stock reaches a 15-month high above $212.00.
Bank of America upgraded Boeing from Neutral to Buy.
BofA analysts see growing production momentum and divestitures helping cash flow.
Boeing stock's next target is $243.00, filling in the gap from January 2024.

Clay Webster FXStreet

Boeing (BA) stock reached another 15-month high on Monday as shares of the airplane maker hit an intraday high of $212.34. That was its highest share price since early February of 2024 and narrowly beat out last Thursday's high.

Boeing's rally was helped by Bank of America (BofA) granting it a Buy rating on Monday. The bank's analysts said US President Donald Trump's habit of getting nations to announce Boeing purchases alongside trade deals should boost the stock in the latter half of the year.

BofA analyst Ron Epstein pointed in his Monday client memo to new Boeing orders being announced alongside trade deals with the United Kingdom, Qatar and the UAE. While the US has a large structural trade deficit, Boeing is the largest single exporter among US corporations and often comprises 2% of all US exports in most fiscal years.

"We now see Boeing breaking its ‘doom loop'", wrote Epstein.

Boeing is on schedule to raise production of its popular 737 Max aircraft from the low 30s to the government's limit of 38 per month by year-end. Epstein and company raised the prospect of the Trump administration raising Boeing's limit to 42 later this year if certain safety criteria are met.

Also, further divestment and reduced research & development costs should help operating cash flow perk up by 2028, according to the client note. Additionally, the analysts see particular upside from Boeing winning the US Air Force’s Next Generation Air Dominance contract earlier this year. Dubbed the F-47, the contract could make Boeing the leader in fighter jet supply in the decades to come.

Boeing stock chart

Boeing stock has spent the past four weeks trading largely above the previous range high from last summer of $196.95. With that level now turning into support if necessary, as well as helping BA shares to break the downtrend cycle, bulls will fix their eyes on filling in the gap from January 2024 by reaching $243.00.

Now well above both the 50-week Simple Moving Average (SMA) near $171 and the 200-week SMA near $188, reaching $243.00 would all bulls to retest the December 2023 range high at $267.54.

BA weekly stock chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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