Boeing Shares Rebound as UBS Sees Selloff Overdone, Free Cash Flow Upside

Boeing shares are recovering from Monday's sharp drop after UBS said the selloff was overdone and that the company's normalized earnings power remains unchanged. The bank's Buy rating on Boeing stock was reaffirmed, with a prediction of $20 billion in free cash flow by 2030.

The recent decline in Boeing shares has wiped out nearly $40 billion in market capitalization since August, when the MAX-7 certification occurred. UBS attributed this drop to a high probability of material hits to cash flow, while normal earnings potential remains intact.

Boeing is facing several challenges, including an FAA delay in certifying the MAX 10 due to a software review that may take weeks or months. Additionally, a union vote is underway, which could lead to a strike in October and impact Boeing's certification of the 777X.