Goldman Sachs has upgraded Boeing (BA) to a 'Buy' rating, citing improved operational performance and a growing order backlog as key drivers. The firm's bullish stance comes amid renewed investor interest in aerospace stocks.
- Goldman Sachs upgraded Boeing (BA) to 'Buy' rating
- Boeing's order backlog stands at ~5,800 aircraft as of 2024
- 2024 deliveries: 200 commercial jets, projected 230–240 for 2025
- $12 billion in new orders in Q3 2024
- BA shares rose 3.7% in after-hours trading
- Boeing approved $4.5 billion share buyback in November 2024
Goldman Sachs has issued a 'Buy' rating on Boeing (BA), marking a significant shift from its prior neutral stance. The investment bank highlighted Boeing's progress in stabilizing production at its 737 MAX and 787 programs, which have been central to the company's recent challenges. Goldman Sachs noted that Boeing's order backlog reached approximately 5,800 aircraft as of late 2024, with over 40% of those commitments coming from Asian and Middle Eastern carriers, signaling strong global demand recovery. The firm's analysis suggests that Boeing's adjusted earnings per share (EPS) could grow by 18% year-over-year in 2025, driven by higher delivery volumes and margin improvements. Boeing delivered 200 commercial jets in 2024, up from 170 in 2023, and is on track to deliver 230–240 aircraft in 2025. Goldman Sachs also pointed to the company's $12 billion in new orders secured in the third quarter of 2024, underscoring renewed confidence from airlines. This upgrade is likely to influence institutional and retail investor sentiment. Shares of BA rose 3.7% in after-hours trading following the announcement, outpacing the broader S&P 500. The aerospace and defense sector, which includes companies like Lockheed Martin (LMT) and Raytheon Technologies (RTX), also saw modest gains as investors reassessed industry outlooks. Boeing's recent capital allocation changes, including a $4.5 billion share buyback program approved in November 2024, further support the bullish case.