Aerospace giant Boeing Co. (BA) faced a turbulent third quarter, reporting a staggering $6 billion loss, its largest since 2020. This significant setback comes amid a protracted labor strike and the company’s ongoing efforts to turn its fortunes around. While Boeing grapples with these challenges, analysts are closely scrutinizing the company’s performance and weighing in on its future prospects.
BofA Securities analyst Ronald Epstein highlighted the muted market reaction to Boeing’s earnings, suggesting investor sentiments are a mix of cautious optimism and lingering concerns. He believes the company’s turnaround hinges on swiftly ending the labor strike, which is estimated to be costing Boeing $50 million per day due to production halts. A strike lasting 58 days could result in a financial impact of nearly $3 billion for the company.
Epstein emphasizes the importance of shoring up Boeing’s balance sheet as a key to its recovery. He expects the company to raise between $18 billion and $20 billion through its recent mixed shelf offering. Additionally, Boeing’s consideration of divesting non-core assets is seen as a positive step toward reducing debt and strengthening its financial position. “We see this as a positive not only for offsetting cash-burn but for Boeing to refocus while transforming,” Epstein noted. Despite the challenges, BofA Securities maintains a Neutral rating and $170 price target on Boeing shares.
Meanwhile, RBC Capital Markets analyst Ken Herbert focused on Boeing’s projected negative free cash flow in 2025, which he adjusted to an estimated negative $8 billion. Herbert, however, expresses optimism about CEO Ortberg’s ability to steer the company back on course, noting that the company expects to return to positive free cash flow in the second half of 2026. He acknowledged that investors are seeking more clarity and specific timelines regarding the return to pre-strike production levels. RBC Capital reiterated its Outperform rating and $200 price target on Boeing shares.
Boeing’s third-quarter performance and the ongoing labor strike are raising serious questions about the company’s trajectory. While some analysts remain optimistic, others are wary about the challenges ahead. It remains to be seen whether Boeing can effectively navigate these headwinds and successfully execute its turnaround plan.
