There is a turnaround opportunity brewing for Boeing (NYSE:BA) shares, according to a note from investment research firm Argus on Monday.
While they noted that BA shares have fallen almost 20% over the past few weeks due to new problems with its 737 MAX airplane, analysts argue that the jet manufacturer has "superior long-term prospects" due to its leading presence in the growing commercial aerospace industry and its significant backlog.
"Further, its usually profitable Defense segment is a top-5 defense contractor," Argus added, maintaining a Buy rating and $240 price target on the stock.
"Looking ahead, once the 737 MAX and 787 are fully back in production and Boeing is accelerating deliveries, we see earnings power of $15-$20 per share," said Argus. "It looks like that will be in 2026-2027 at the earliest."
The firm also noted that BA management is making progress on the turnaround and cash flow growth, which they think can lift valuation multiples.