Boeing Faces Significant Stock Challenges Amidst Setbacks

Boeing struggles in 2024 as stock declines 32% while peers gain. Analysts fear continued production issues may hinder recovery in 2025, echoing past challenges faced by the company.

Date: 07-01-2025

AI Rating: 4

Earnings and Revenue Insights

Boeing's challenges in 2024 led to a significant stock decline of 32%, compared to the 23% increase in the S&P 500 index. The report outlines various issues that have negatively impacted Boeing’s financial performance.

Profitability Analysis

The analysis highlights that Boeing expects a profit of $3.27 per share in 2025, a notable recovery from a loss of $5.81 per share in 2023, indicating potential improvement in profitability. However, the mention of cash burn in operations suggests caution in short-term expectations.

Production Challenges

In 2024, Boeing faced numerous production challenges, including a halt on the expansion plans for the 737 Max due to safety concerns. Furthermore, the repercussions of a labor strike cost the company over $5 billion and negatively affected production targets.

Future Outlook

The report estimates Boeing’s valuation at $178 per share, indicating a slight upside from its current level of $170. Wall Street analysts are cautious going into 2025, citing cash flow issues and lower production rates. Nonetheless, the expected completion of the acquisition of Spirit AeroSystems may help Boeing tackle its ongoing quality control challenges.

Comparison with Peers

Boeing's performance has starkly contrasted with its peers in the aerospace sector, with companies like GE and Airbus showing solid gains. Analysts are taking this underperformance into account when adjusting their price targets for Boeing.

Stocks: BA GE