Boeing Just Got A Major Stock Upgrade: It's Trump's 'Favored Trade Tool,' Says Bank Of America

Bank of America upgraded Boeing Co. (NYSE:BA) from ‘Neutral’ to ‘Buy,’ calling the jet maker a key beneficiary of President Donald Trump‘s trade talks.

What Happened: "Boeing aircraft have emerged as the favored trade tool for the Trump Administration in recent trade deals," Bank of America analyst Ronald J. Epstein said in the note shared Monday.

"We suspect this will continue," he added.

Epstein also raised its price target to a Street-high $260 amid signs of a long-awaited turnaround.

The new price target implies a 25.4% upside from Boeing's last close at $207.32.

Here are the latest developments that unfolded from Trump’s travels:

• IAG, owner of British Airways and other European carriers, announced a nearly $13 billion purchase for 32 new Boeing aircraft.
• Qatar Airways intends to buy up to 210 Boeing aircraft after Trump visited the Arabian Peninsula and agreed to accept a Boeing 747 from Qatar as a gift.
• Etihad Airways confirmed an order for 28 new Boeing long-haul aircraft during Trump’s visit to the United Arab Emirates.
• And China lifted its long-standing ban on Boeing jets, opening the door to more deliveries in a key growth market.

"These set a precedent for future global trade negotiations, to BA's benefit," Epstein said.

BofA doesn't see backlog alone driving valuation, but it highlights Boeing's new role as a trade facilitator. Combine that with operational improvements and asset sales, Epstein adds, it creates a "buying opportunity.”

The F-47 Next Generation Air Dominance contract—awarded earlier this year—is also a win for Boeing's defense business. It secures a foothold in a decades-long fighter program and could help draw top engineering talent to the firm.

Why It Matters: Boeing is attempting to pull out of a crisis. A tough first quarter included a $2.9 billion accounting loss tied to high production costs. That translates to a loss of roughly $30 million per aircraft.

The company also remains under heightened scrutiny due to public concern over the safety of its aircraft. Various events, including mid-air malfunctions, engine fires, and two fatal 737 MAX plane crashes that claimed 346 lives, have significantly impacted its reputation.

Boeing also happens to have the backing of Trump’s Department of Justice, which recently moved to dismiss criminal fraud charges against the company.

It now claims to be restoring stability in its core 737 program.

Even so, Epstein said Boeing is on track to produce 38 jets per month by the fourth quarter. That's up from 25 in March and 33 in April. The company may even push to 42 jets per month by year-end if the Federal Aviation Administration lifts its current cap.

Epstein added that Boeing has reduced traveled work by 50% and continues to unwind excess inventory, especially 737-8 aircraft built for Chinese customers before 2023.

What’s Next: The analyst also expressed confidence in CEO Kelly Ortberg, appointed last August, calling him central to the company's restructuring.

Ortberg helped negotiate an end to the 53-day IAM strike, launched portfolio realignments, and implemented new safety systems.

Under his leadership, Boeing is also shedding non-core assets—most notably, its planned $10.6 billion sale of Digital Aviation Solutions.

"Sisyphus [is] on the path to breaking the ‘doom loop’," Epstein said, using a Greek myth to describe Boeing's woes.

Looking ahead, BofA estimates earnings per share will jump from 35 cents this year to $6.40 by 2027. Free cash flow is forecast to swing from a $3.5 billion loss in 2025 to $5.5 billion in 2027. Further upside is tied to the 787 and MAX programs.

“A premium to the market fairly reflects the strong demand for commercial jets, impending production ramp, steady improving execution and the F-47 program,” Epstein said.

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