Boeing (BA): Assessing Valuation as Delivery Delays Spark Investor Reassessment

Boeing (BA) shares have slipped about 1% today, trading around $194. The move comes amid broader market uncertainty and recent headlines about aircraft delivery timelines. These developments have prompted investors to reassess the company’s outlook as the summer travel season ramps up.

See our latest analysis for Boeing.

Despite the recent dip, Boeing’s short-term momentum has cooled after a strong year. Its share price is still up 13% year-to-date, and its total shareholder return over the last year stands at an impressive 28%. The current pullback comes as investors weigh recent news about delivery delays against this longer-term recovery.

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With shares well below analyst price targets but still up strongly from last year, the key question now is whether Boeing is undervalued, or if expectations for future growth are already built into the current price.

Most Popular Narrative: 22.9% Undervalued

Boeing’s most widely followed narrative places its fair value at $252.57. That is well above the last closing price of $194.61, sparking debate among investors about what is driving this optimistic valuation gap.

Production stabilization and planned rate increases for key aircraft models (737 MAX, 787) position Boeing to benefit directly from robust global demand for air travel. Driven by expanding middle-class populations and urbanization in emerging markets, these demand tailwinds should support outsized revenue growth and eventual operating margin expansion as fixed costs are spread over higher unit volumes.

Read the complete narrative.

Curious what is behind this bullish target? The secret is not just pent-up demand. The narrative hints at bold revenue growth assumptions and an even more aggressive turnaround in profits. Flip through the full analysis to see what numbers have analysts so confident.

Result: Fair Value of $252.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent production delays and ongoing reputational challenges remain key risks that could slow Boeing’s recovery and test analysts’ optimistic outlook.

Find out about the key risks to this Boeing narrative.

Build Your Own Boeing Narrative

If you see things differently or want to draw your own conclusions from the numbers, it only takes a few minutes to build your perspective. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Boeing.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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