Out of the darkest moment? Wall Street turns bullish—can Boeing (BA.US) return to the top with "production capacity and cash flow"?

Odaily has noted that Boeing (BA.US)'s efforts to reverse its business downturn are receiving enthusiastic applause from Wall Street—this week, analysts’ bullishness on the company reached its highest level in nearly four years.

After Argus Research Corp. and BNP Paribas both upgraded their ratings within just ten days, on Tuesday, the proportion of "Buy" recommendations for the aircraft manufacturer hit its highest since October 2022. Among the 32 tracked analysts, none recommended selling the stock.

Ivan Feinseth, Chief Investment Officer and Director of Research at Tigress Financial, stated, "After years of struggle, this is Boeing’s time to shine." Feinseth also gave the stock a "Buy" rating, setting the highest target price on Wall Street at $305.

The boost in analyst optimism comes just as Boeing last week won the long-awaited FAA certification for its 737 Max 7 jet—a process that dragged on for nearly a decade, overshadowed by two deadly crashes and quality control flaws. The company’s COO Stephanie Pope called it "a pivotal moment for Boeing’s recovery."

The proportion of "Buy" ratings on Boeing hit the highest level since October 2022

Boeing’s stock has largely remained flat this year, rising only about 6%, compared with a 13% rally in the broader market. Its largest rival, Airbus SE, saw its Paris-listed shares rise about 8% over the same period.

Meanwhile, Boeing's trading valuation—about 1.7 times its projected revenue for the next 12 months—remains higher than the 10-year average of 1.5 times.

All in all, investors who have faced severe tests in recent years remain cautious. From a series of crashes, to the near-halt in air travel during the pandemic, to incidents such as mid-air door panel blowouts, Boeing has stumbled through crises, making its stock a classic "show me the evidence" story, with its road to recovery often seeming precarious.

However, market sentiment has gradually shifted over the past year, eventually prompting BNP’s Matthew Akex—the last analyst with a "Sell" rating—to throw in the towel last week and assign one of the stock's highest target prices. He stated, "The era of post-pandemic uncertainty for Boeing is over."

Akex also expects that, after “falling too much,” consensus estimates for Boeing’s free cash flow will start to rise, and believes the stock has the potential to nearly double from current levels by 2030.

Meanwhile, Argus analyst Kristina Ruggeri, who raised her rating from "Hold" to "Buy" on Tuesday, justified her view by pointing to expectations of a meaningful production ramp-up.

Most importantly, as one of the world’s two global aircraft manufacturing duopolists alongside Airbus, Boeing is positioned to fully benefit from years of booming global commercial airplane demand and rising defense spending. Just last month, the company reported strong results, with free cash flow well above expectations.

Joe Gilbert, portfolio manager at Integrity Asset Management, said, "The market has been waiting for proof of execution, and those signals are now starting to emerge."

Boeing’s share price remains below its pre-pandemic peak

Despite recent optimism, it’s a long road for Boeing’s stock to reach its all-time high of $440.62 in March 2019. Since then, the stock has lost nearly 50%, while the S&P 500 has surged about 180%, the Dow Jones Industrial Average has doubled, and Airbus’s share price is up about 90%.

Data show that analysts expect Boeing to report about $2.44 billion in free cash flow this year, compared to $13.6 billion in 2018. Similarly, the company is expected to lose 83 cents per share, whereas in 2018 earnings per share were $16.01.

Nonetheless, analysts and investors say the early signals of recovery are undeniable.

Eric Diton, President and Managing Director of Wealth Alliance, said, "It may be too soon to call this a 'new era,' but the momentum shift is clearly apparent," adding, "After some genuinely tough years, the company’s trajectory has turned positive this year."