Freedom Broker sees the current moment as a good time to invest in Boeing

Freedom Broker considers the current situation a good moment to buy shares of Boeing Company (BA). The target price under the investment idea is $242, with a stop-loss at $190. At the current price of $210,5, the upside potential is nearly 15%. Experts expect that new defense contracts, a recovery in aircraft deliveries, and improved cash flow will support the company’s stock.

What kind of company is Boeing

Boeing is one of the world’s largest manufacturers of civilian and military aviation equipment. The company produces passenger aircraft of the 737 MAX, 787 Dreamliner, and 777X families, as well as rockets, satellites, military aircraft, and missile-defense systems. Boeing’s business consists of three main areas: commercial aviation, defense and space programs, and services.

Defense contracts will improve the business mix

As the main argument in favor of buying, Freedom Broker analysts cite the expansion of defense programs. Contracts for missiles and interceptors could provide Boeing with additional revenue and improve the profitability of the Boeing Defense, Space & Security (BDS) defense unit, which remains low for now.

On August 14, the U.S. Department of Defense entered into seven-year framework agreements with Boeing and RTX Corporation (RTX) to increase output of critical components for SM-3 Block IB and SM-3 Block IIA interceptor missiles for the Aegis missile-defense system.

The terms allow Boeing to begin ramping up production even before a multiyear contract is signed. In analysts’ view, this increases future plant utilization, improves revenue visibility, and creates conditions for margin expansion as production volumes rise.

A contract with Qatar will expand the KC-46A program

An additional catalyst was the potential sale to Qatar of up to four tanker aircraft KC-46A. The U.S. State Department approved the potential deal worth up to $4,5 billion, including engines, defensive systems, training, and technical support.

Qatar could become a new overseas operator of the KC-46A after the U.S., Japan, and Israel. Expanding the fleet will increase not only aircraft deliveries but also future service revenues.

The first KC-46A was delivered to Israel in May, and Boeing and the U.S. Air Force also agreed on a plan that calls for increasing the readiness of the U.S. fleet of these aircraft by about 20% by 2030. This could reduce the program’s reputational risks and increase interest from other foreign customers.

New rules will help increase margins

Another possible driver, analysts say, is the U.S. Department of Defense’s intention to tighten oversight of contract pricing and costs in supply chains. Greater transparency could help Boeing identify inflated pricing for scarce components among certain suppliers. For the company’s low-margin defense business, this creates an opportunity to improve pricing and recapture some margin that currently remains with specialized contractors.

In Freedom Broker’s view, the increase in the number of contracts for missiles and interceptors is particularly important, since the profitability of such programs may be higher than the current margin of the entire BDS unit.

Boeing’s cash flow returned to positive territory

In Q2 2026, Boeing’s revenue rose 8% year over year to $24,6 billion, beating market expectations by about 1,2%. Net loss narrowed from $612 million to $428 million, and GAAP loss per share improved from $0,92 to $0,67. The adjusted loss was $0,76 per share. The result was affected by additional $280 million in charges under the VC-25B presidential aircraft program and price concessions on aircraft deliveries.

At the same time, operating cash flow increased more than sixfold to $1,36 billion. Free cash flow returned to positive territory and totaled $631 million. The total backlog reached a record $715 billion, including more than 6200 commercial airplanes. Analysts believe that growth in deliveries and defense orders will allow Boeing to gradually improve its financial profile.

Why analysts recommend buying BA shares

According to Freedom Broker, Boeing’s fundamentals are gradually improving. The company is increasing deliveries of commercial aircraft, securing new defense orders, and generating positive free cash flow for the first time in a long period. Analysts believe the current price offers an attractive entry point and allow for at least a technical rebound in the stock. An additional advantage is Boeing’s weak dependence on the performance of the overheated segment of companies tied to artificial intelligence.

Boeing orders in summer

In July, Boeing delivered 53 commercial airplanes to customers—17% fewer than in June, but five more than a year earlier. The bulk consisted of 39 aircraft from the 737 MAX family. The company also handed over 10 787 Dreamliner aircraft to customers, one 777 freighter, and three 767 aircraft.

In the first seven months of 2026, Boeing delivered 367 aircraft, including 279 737 MAX jets and 50 787 aircraft. Nearly 76% of all deliveries were from the 737 MAX family. In July, the company received 38 new orders, but after eight cancellations the net increase was 30 aircraft. Boeing continues to lag Airbus: the European competitor delivered 67 aircraft in July versus 53 for the U.S. manufacturer and remains the leader in deliveries year to date.

Not an individual investment recommendation.