Boeing Landed New Deals With China and the Saudis for More Upside

After a few years of being under the gun of scrutiny and negative headlines, shares of Boeing Co. (NYSE: BA) might be ready to lift into new heights in the coming months. This unlikely candidate has made new headlines that likely appeared across investors’ monitors and wires, with some new signs of acceptance after a prolonged period without accidents or new lawsuits (which had become the norm for Boeing since 2018).

This new announcement and further acceptance of the rectified situation dealing with parts issues and the like have given investors a sort of green light to start considering Boeing stock for their portfolios moving forward, even in the middle of what has escalated to become an outright trade war between the United States and several other nations.

Boeing shareholders received a decent scare when China threatened to ban its planes in response to the new tariffs, though that didn’t last long.

Today, China has joined the Saudi governments in rolling out new Boeing plane orders for their fleets, taking a step forward in the global tariff negotiations and showing the entire market that Boeing’s quality and reliability are back to their former glory. Otherwise, these nations would have an easy time looking for replacements, though when it comes to Boeing, there are none in the transportation sector.

Wall Street Becomes Bold Again on Boeing Stock

While most analysts on Wall Street had grown wary and careful about boosting and rating Boeing stock higher due to the bearish price action and negative headlines that consistently circulated during recent years, today, the story seems to have shifted for the better.

As of mid-May 2025, Susquehanna analyst Charles Minervino decided not only to reiterate his Positive rating on Boeing stock but also to press for a much higher valuation target than was previously set. While his previous view was set at $205 per share, this analyst now sees the company’s fair value being closer to $240 per share, making it the highest forecast today.

This new view would not only call for Boeing to rally by as much as 18% from where it trades today (which is attractive on top of the 15.9% rally already delivered on a year-to-date basis) but also imply that Boeing can make a new 52-week high. This breakout and the news of new orders coming in likely cause more momentum buyers to come into the stock.

Some would say that these new orders clearing Boeing from all the negativity was enough of a reason to justify institutional buyers from UBS Asset Management to boost their Boeing holdings by as much as 3.2% as of May 2025 as well, raising the stakes at the bank’s investment branch to a high of $500.2 million today.

A Leap of Faith Backed by Sentiment

Now, these nations ordering new Boeing planes aren’t alone in feeling optimistic about Boeing’s future and stability. The bearish side of the equation has also admitted that the worst might be behind Boeing today. Over the past month, up to 10% of Boeing’s short interest declined to show signs of bearish capitulation.

More than that, there seems to be a consensus about Boeing's optimistic future in the coming months. When looking at one of the main drivers of any stock’s valuation, its underlying earnings per share (EPS), investors can see that the curve is starting to steepen in favor of buyers.

Expecting to see up to $0.72 in EPS for the first quarter of 2026, Wall Street analysts are effectively pushing for what most would call a miracle, considering that Boeing recently reported a net loss of $1.39 per share in its last quarter. This sudden shift to profitability can only be delivered through more new order activity, which aligns with what’s happening today.

However, the best part for the bulls is that these new Chinese and Saudi orders have likely not been priced into these EPS projections, given how recently they were announced. This creates a path forward for Wall Street analysts to rotate their views even higher on EPS, therefore pushing the stock’s valuation higher as well.

With better earnings come more bullish price targets and valuations for the company as well, and that is a reality that shareholders might face in the coming months. This justifies the recent institutional buying driven by the underlying recovery in the company’s cash flow and earnings, with potential new orders coming in from other participants on this confidence.

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The article "Boeing Landed New Deals With China and the Saudis for More Upside" first appeared on MarketBeat.