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Will Boeing Stock Go to $300? 1 Wall Street analyst thinks so.

If you believe the experts, Boeing (NYSE: BA), a company and stock that has been in the doghouse lately, is poised to rise again. An analyst who follows the aerospace giant predicts that it will regain significant heights in the coming year. She has set a price target for the shares that is almost 60% above their current levels.

Boeing stock is a low-flying bargain

Boeing just hasn’t done well in recent years. It was hit hard by the coronavirus pandemic earlier this decade, when air traffic dropped precipitously for obvious reasons, and suffered an embarrassing accident earlier this year when a door plug on one of its 737-9 MAX planes came loose during a flight. A subsequent quality control investigation by the Federal Aviation Administration revealed production deficiencies at the company.

None of this prevented Jefferies analyst Sheila Kahyaoglu from repeating her buy rating on the stock at the end of March. She also maintained her $300 price target for the next twelve months, which is quite a bold stance considering it’s 59.5% higher than the aerospace company’s current share price.

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The root of Kahyaoglu’s optimism is Boeing’s 787 Dreamliner model. In her latest research note on the company, she wrote that the aircraft is “set up favorably given its positioning in a growing widebody market.” According to her, the 787 alone could generate $2.6 billion in free cash flow (FCF) by 2026.

Strong headwind

The analyst is right to be optimistic about the 787’s prospects, given the travel industry’s robust growth since the coronavirus pandemic and resulting consumer interest in taking long-haul trips. Still, Boeing has suffered reputational damage that will take some time to repair, and quality control issues are often not quickly or easily resolved either. Kahyaoglu’s ambitious price target may be too ambitious for this stock over a one-year horizon.

Should You Invest $1,000 in Boeing Now?

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Eric Volkman has no positions in the stocks mentioned. The Motley Fool holds and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy.

Will Boeing Stock Go to $300? 1 Wall Street analyst thinks so. was originally published by The Motley Fool

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