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Goldman Sachs Analyst Remains Bullish On Boeing Despite Weak Q3: 'Long-Term Deep-Value Opportunity'

Goldman Sachs analyst Noah Poponak reaffirmed his bullish stance on Boeing Co. (NYSE:BA), despite the defense giant’s challenging third quarter marked by production delays, labor disputes and heavy losses.

Labeling Boeing a “long-term deep-value opportunity,” Poponak reiterated a Buy rating on the stock with a 12-month price target of $200, representing nearly 30% upside from current levels.

With robust demand for Boeing's aircraft, a planned capital raise to shore up finances, and fresh leadership focused on operational improvements, Poponak suggests that Boeing is poised for a significant recovery over the next year.

"While Boeing faces a number of challenges, much of that is already priced into the stock," Poponak said, suggesting that investors could see substantial returns if the company can execute its turnaround strategy.

He indicated that Boeing's new management team brings an "external perspective" that could drive meaningful improvements in operational performance and profit margins, setting the stage for long-term growth.

Boeing’s Q3 2024: Weak Earnings During Persistent Headwinds

Boeing's third-quarter results revealed the extent of the hurdles it faces. The company reported total revenue of $17.84 billion, a 2% decline year-over-year, in line with analysts' expectations.

Losses were above expectations: core EPS was $(10.44), slightly missing consensus estimates of $(10.35) and Goldman's own projection of $(9.96).

The most significant losses stemmed from the Boeing Commercial Airplanes (BCA) segment, which recorded a loss of $4.02 billion, worse than Goldman's anticipated $3.79 billion loss.

These losses were largely attributed to production setbacks with the 777X and ...