Citi analysts reaffirmed a Buy rating on Boeing (NYSE:BA) with a $210 price target, arguing that the market is undervaluing the company’s long-term growth prospects.
According to the bank, current valuations reflect an unrealistically low assumption of less than 1% free cash flow (FCF) growth indefinitely, whereas a 3% growth rate is achievable based on industry trends. If Boeing meets this target, the stock could see up to 50% upside from current levels.
The analysts pointed to several key growth drivers, including a 3.2% compound annual growth rate in global airline fleet expansion over the next 20 years, as well as a projected 3% annual increase in the Department of Defense’s base budget through fiscal 2030. These factors provide a strong foundation for sustained revenue growth in both the commercial aerospace and defense sectors.
Despite recent turbulence surrounding Boeing’s operational challenges, long-term fundamentals remain intact, and Citi sees a compelling investment opportunity as the company capitalizes on rising global demand for aircraft and defense contracts.