Ahmedabad, India — Boeing is facing renewed scrutiny following a tragic incident on June 12, when an Air India Flight 171, operated by a Boeing 787 Dreamliner, crashed shortly after takeoff from Ahmedabad. The accident resulted in the deaths of 260 people, making it the most devastating aviation disaster in India in nearly 30 years and the first loss of a 787 since its introduction in 2011.
Recent developments indicate that India’s Aircraft Accident Investigation Bureau (AAIB), with aid from U.S. experts, has successfully obtained data from both the cockpit voice recorder and the flight data recorder. The analysis of this data, which includes more than 88 flight parameters and 25 hours of cockpit audio, is crucial for understanding the series of events that led to the tragic crash. The recovery took place in Delhi, adhering to government commitments to keep components from the black box within India. Preliminary findings are anticipated within a month and may clarify whether mechanical failures, engine thrust loss, or potential sabotage played a role in the incident.
As this investigation unfolds, some analysts on Wall Street are optimistic about Boeing’s prospects. Olivier Brochet, an analyst at Redburn, suggests that the company has begun to stabilize under CEO Kelly Ortberg, who took the helm in mid-2024. Brochet noted signs of a positive shift, stating that Boeing appears to be recovering from a series of challenges that have plagued it for years.
Brochet’s analysis highlights potential growth in deliveries of the 737 and 787 models, which he estimates could yield an additional $1.7 billion in post-tax cash profits, marking a 13% increase in his projected cash flow for 2029. Should this scenario materialize, Boeing’s free cash flow could exceed $14 billion by the end of the decade, surpassing its peak of $13.6 billion from 2018.
The analyst emphasized that the quality of these cash flows is expected to improve significantly following substantial changes aimed at enhancing Boeing’s safety and operational protocols. “Our confidence in the company’s recovery has strengthened, and we anticipate greater upside potential relative to existing forecasts,” Brochet remarked.
Based on this positive outlook, Brochet has raised his price target for Boeing shares from $180 to a market-leading $275, indicating a potential upside of 31% from the current levels. He has also upgraded his rating on the stock from Neutral to Buy.
Broadly, Boeing continues to gain support from financial analysts. With a consensus rating of Strong Buy backed by 17 Buy recommendations and 2 Holds, market forecasts suggest that the stock may achieve around 8% gains over the next year, considering the average price target now stands at approximately $226.22.
Investors looking for attractive stock opportunities are encouraged to conduct their analyses while bearing in mind the ongoing investigations and developments surrounding Boeing.