Boeing, despite its recent challenges, still presents a compelling case for investors considering buying its stock. With a $529 billion backlog and 125 net orders in the first quarter alone, Boeing remains a key player in the global commercial airplane market. However, the company’s $10 billion free cash flow target for 2025/2026 is now in question.
Analysts predict that Boeing will fall short of this target, with a projected $9.3 billion in free cash flow in 2026. The company faced setbacks in 2023, including delivery delays and quality control issues, leading to a grounding of Boeing 737 Max 9 airplanes. These challenges have raised doubts about Boeing’s ability to meet its financial goals.
Several factors contribute to the uncertainty surrounding Boeing’s future performance. Production ramps, supplier issues, potential acquisitions, delivery delays, and labor negotiations all pose significant obstacles for the company. Maintaining production quality is crucial, but it requires substantial investment and ongoing efforts.
While there is still a case for investing in Boeing stock, particularly for long-term investors, the current challenges suggest caution. Investors may want to wait for more clarity on these issues or for management to adjust its targets before considering buying Boeing stock. The company’s ability to overcome these obstacles will ultimately determine its success in the market.