Boeing's Turbulence May Be Setting Up for Liftoff

Boeing's stock has been experiencing turbulence lately, sliding around 6%, 11% over the past month and leaving it roughly 9% lower over the last year. The decline intensified after CEO Kelly Ortberg warned of operational challenges, including bottlenecks in 737 MAX wing production and slower-than-expected stabilization of output at about 47 jets per month.

Despite the volatility, Wall Street remains bullish on Boeing. Analysts hold a Strong Buy consensus, with an average 12-month price target of about $274.67 versus recent prices near $197, $198, implying upside of roughly 35%, 38%. Bank of America's Ronald Epstein, a highly rated analyst, has reiterated his Buy rating and $270 target.

Epstein views Boeing's issues as typical 'growing pains' in a complex, regulated industry, not a broken turnaround story. He expects certification of the 737 MAX 10, which represents about 30% of Boeing's 737 backlog and is seen as a major free-cash-flow driver.