What Happened?
Shares of aerospace and defense company Boeing (NYSE:BA) jumped 3.4% in the afternoon session after JP Morgan raised its price target on the shares to $245 from $240. The firm kept its "Overweight" rating, signaling it expected the stock to perform well. JP Morgan cited a positive outlook for the aerospace sector, noting that with multi-year production backlogs for Boeing and Airbus, growing air traffic, and an aging global aircraft fleet, the environment for commercial airplane makers was favorable. The bank called Boeing a "top pick," stating the opportunity was straightforward: "the company must build and deliver more aircraft."
Adding to the positive news, Turkish carrier Pegasus signed a supply and maintenance agreement with CFM International for engines to power its Boeing 737-10 aircraft, a deal valued at up to $5.9 billion.
After the initial pop the shares cooled down to $215.17, up 3.3% from previous close.
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What Is The Market Telling Us
Boeing’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 8% on the news that the company's Chief Financial Officer, Jay Malave, said the planemaker expected 737 and 787 deliveries to increase in 2026.
Speaking at a conference, the CFO stated that the company's recovery was "in full force." The anticipated rise in plane deliveries, along with improvements in its defense and space unit, were expected to be primary drivers for better margins in 2026. Boeing also projected it would achieve positive free cash flow in 2026, a significant turnaround from an expected $2 billion outflow in 2025. Adding to the positive news, the company received a nearly $4.7 billion contract from the U.S. Army to build 96 AH-64E Apache helicopters for Poland.
Boeing is up 25.2% since the beginning of the year, but at $215.17 per share, it is still trading 9.4% below its 52-week high of $237.38 from September 2025. Investors who bought $1,000 worth of Boeing’s shares 5 years ago would now be looking at an investment worth $981.10.
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