Boeing Gains Altitude as TD Cowen Sees Brighter Production Path
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Boeing stock advanced Tuesday after TD Cowen raised its price target for the aerospace giant, citing a more favorable production trajectory and improving operational visibility across its commercial aircraft programs.
The investment firm lifted its 12-month price target on Boeing shares from $230 to $255, reiterating an “Outperform” rating. The upgrade reflects TD Cowen’s confidence in Boeing’s ability to ramp up aircraft deliveries and resolve lingering supply chain issues that have hampered the company’s recovery in recent quarters.
“Production normalization appears to be gaining momentum,” analysts noted in their latest research note. “We expect sustained improvements in aircraft delivery volumes through the second half of 2025, especially in the 737 and 787 programs, which should drive earnings and margin expansion.”
The positive reassessment comes as Boeing seeks to reassure investors after a turbulent start to the year, marked by production halts, regulatory scrutiny, and leadership reshuffling. Recently installed CEO Dave Calhoun has emphasized transparency and a renewed focus on manufacturing quality as part of a broader strategic reset.
Market participants have welcomed signs of stabilization. Boeing recently reaffirmed its target of delivering between 375 and 400 737 jets this year, alongside improved cadence in 787 Dreamliner production. The company also received a vote of confidence from airlines in recent weeks, with a series of commercial orders suggesting demand remains intact despite macroeconomic uncertainty.
TD Cowen’s bullish outlook aligns with broader sentiment among Wall Street analysts, many of whom believe that Boeing’s current valuation underestimates its long-term potential. The firm expects operating margins to rebound gradually as production bottlenecks ease and regulatory challenges subside.
Still, risks remain. Analysts cautioned that supply chain fragility and labor constraints could disrupt Boeing’s recovery path. Additionally, ongoing oversight from the Federal Aviation Administration and global regulators will continue to shape the company’s near-term performance.
Nevertheless, Tuesday’s upgrade marks a notable shift in tone for a stock that has seen significant volatility in recent months. As Boeing pushes forward with production improvements and corporate restructuring, investor sentiment appears to be turning a corner—one price target hike at a time.
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