BNP Paribas Predicts Boeing Could Hit $300 as Certifications Loom

Boeing shares rose sharply on Monday after BNP Paribas upgraded its rating of the company, predicting that it could be worth more than twice its current share price by the start of the next decade.

The bullish call from analyst Matthew Akers came as a surprise, given his previous bearish stance on the stock. However, he now believes that Wall Street's free-cash-flow projections for Boeing have come down 'too far,' and that the company's risk profile should improve over the next 12 months.

Akers points to several key developments, including the Federal Aviation Administration's approval of the 737 Max 7, which removes one major overhang from the company. He also expects additional certifications for Max and 777 variants in the coming year, as well as declining debt and fading defense writedowns.

As a result, Akers has raised his forecast for Boeing's free cash flow to $7 billion by 2027, up from an average estimate of $6.23 billion compiled by Bloomberg. He also predicts that the company's free cash flow will reach around $16 billion by 2030.

With a current share price of around $150, Akers' target of $300 is the highest on Wall Street, and is about twice the current level.