Boeing (BA) stock opened at $219.18 on Friday, slightly above its 200-day moving average of $218.62, as analysts begin to focus on the company’s defense business amid a recent selloff in aerospace and defense stocks.
Citi has raised its price target on Boeing to $260 from $256, maintaining a Buy rating and calling the recent downturn a significant buying opportunity. Their analysis highlights Boeing’s robust defense momentum as a critical factor in its recovery.
In the first quarter of this year, Boeing’s Defense, Space & Security segment reported an impressive $7.6 billion in revenue, marking a 21% increase year-over-year. Operating earnings within this segment surged to $233 million, up from $155 million, while the backlog reached a record $86 billion, with 27% attributed to international customers.
Overall, Boeing’s total revenue for Q1 was $22.22 billion, a 14% rise compared to the same quarter last year, successfully surpassing analyst estimates of $22.15 billion. Notably, the EPS loss of -$0.20 was significantly better than the consensus estimate of -$0.68, providing some optimism to investors.
Despite these positive numbers, challenges remain on the commercial side. Boeing reported a GAAP loss of 11 cents per share, and complications regarding the 777X certification, particularly issues related to “hot brakes,” have raised concerns about execution and weighed down the stock performance.
Defense Momentum Builds Investment Case
Apart from favorable quarterly results, Boeing established a seven-year framework with the U.S. Department of Defense in April, aiming to triple production of PAC-3 seekers used in Patriot missile interceptors. Since 2024, Boeing has invested over $200 million to enhance production capacity in Huntsville, Alabama.
The proposed fiscal 2026 defense budget includes $2.5 billion dedicated to missile and munitions production, ensuring continued government spending support for Boeing. Additionally, in March 2025, Boeing was awarded a pivotal engineering and manufacturing development contract for the F-47, the Air Force’s Next Generation Air Dominance program, which is anticipated to be the world’s first sixth-generation fighter aircraft.
China Order and Insider Activity Add to the Mix
Recent developments also include China confirming a significant order for 200 aircraft from Boeing, which is part of broader U.S.-China trade negotiations. While some investors were hoping for a larger order, this deal nonetheless enhances demand visibility for Boeing.
On the institutional investment front, Connors Investor Services opened a new position valued at approximately $10.46 million in Q4, while AXA S.A. has increased its stake by over 1,200%. Institutional investors currently hold around 64.82% of Boeing shares.
In a sign of confidence, Boeing Director Bradley D. Tilden purchased 1,370 shares at $218.50 each on May 20th, totaling $299,345, as disclosed in a filing with the SEC.
Overall, the consensus rating for Boeing stands at “Moderate Buy,” with an average price target of $259.80, indicating a generally optimistic outlook from market analysts.
