The Punchline Just Became The Headline As Boeing Soars Off New BofA Upgrade…

There’s a special place in financial hell for stocks that spend an entire year as the market’s punchline and then moonwalk back into everyone’s portfolio the minute a Wall Street bank changes its mind. This is Boeing, where the only thing more volatile than the 737 Max is analyst conviction.

Punchline

(Source: Giphy) 

As we all know, Boeing has spent a majority of its god awful time getting absolutely pummeled in broad daylight over the past year, as shares dipped below the dreaded $130 mark back in April. Fast-forward to this week, and not only is Boeing up 60% off those lows, it’s now sitting at a clean 15-month high above $212, with Bank of America waving pom-poms and pretending it was never neutral in the first place. 

Why? Well because according to BofA’s Ron Epstein, who confided in a memo, Boeing planes are now the “favored trade tool” of Trump’s economic diplomacy. Read: Whenever the White House cuts a deal, someone in Doha, London, or Beijing gets a new fleet of Boeings. Recent wins: 32 aircraft to the UK, 210 to Qatar, and 28 to the UAE. Meanwhile, China added the icing on the cake by finally removing the ban on BA planes after what felt like an eternal timeout. 

Punchline

(Source: CNBC) 

What’s more is that Boeing is the single biggest U.S. exporter, accounting for a fat chunk of America’s trade math each year. Epstein argues that as long as Trump stays addicted to “deal optics,” expect Boeing to keep showing up at these global handshake selfies. The new price target from BofA? $260, up from $185… which is a 25% bump from its call out price, and a massive sigh of relief for investors who couldn’t muster up the courage to dump their bags. 

With that said though, there’s apparently more to the bull case than just Donnie Politics single-handedly carrying the team here. Boeing’s production for the 737 Max is crawling out of the hole, with targets to hit the regulatory ceiling of 38 per month by year-end. Oh, and if the FAA stops looking like someone just swapped their coffee for NyQuil… maybe even 42 per month soon after. Throw in some fat defense contracts (Air Force’s Next Gen Air Dominance contract, anyone? Hello, F-47), plus some long-overdue corporate diet plans (divestitures, R&D cuts), and suddenly Boeing starts to look…almost healthy. Sort of. Don’t look too close. 

Punchline

(Source: Giphy) 

As for the short-term price action? Pure violence. BA spent four weeks breaking every resistance level from last summer… with $196.95 now flipping from ceiling to floor. The crazier part? If you’d asked analysts six months ago to name the safest trade tool in DC, they’d have said “tariffs.” Now it’s looking suspiciously like “Boeing order forms.” Oh, how the turntables.

In the end, the bottom line is this… the punchline always gets the last laugh. And in Boeing's case, not only are they getting theirs, but they are getting a 25% upside with it. Of course, only time will tell if that price target actually gets hit, but for now, Boeing is on cloud 9. Literally and figuratively. Until next time, friends… 

Punchline

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Stocks.News does not hold positions in companies mentioned in the article.