Argus Upgrades Boeing to Buy on Production Ramp and Cash Flow Outlook
Boeing shares have traded just 2% above their start-of-year price in 2026, but Argus Research sees a 14% rally ahead driven by order backlog visibility and improving free cash flow.
Argus Research has upgraded Boeing shares to a Buy rating, assigning a $265 price target that implies a potential 14% rally from current levels. Senior analyst Kristina Ruggeri cited improved commercial aircraft production ramp-up, a robust order backlog, and expected free cash flow of up to $3 billion for 2026 as key drivers for the upgrade.
The move comes as Boeing shares have traded just 2% above their start-of-year price in the first seven months of 2026. Despite this muted performance, Ruggeri believes the story will change in the second half of the year, pointing to exceptional visibility into future revenue provided by the company’s massive order backlog.
Boeing recently reported market-beating earnings for its fiscal second quarter, with revenue increasing 8% year-on-year to $24.56 billion. Ruggeri noted that strong order backlog, solid revenue growth, and margin improvement are expected to continue in coming quarters as the company stabilises assembly lines and accelerates delivery cadence.
Beyond manufacturing momentum, the analyst highlighted improving cash flow as a major catalyst. Boeing expects free cash flow to hit as much as $3 billion this year, with management targeting a return to a historic $10 billion annual run rate. This improvement is expected to strengthen the balance sheet, reduce net debt, and restore fundamental investor confidence.
While Boeing has not yet resumed dividend payments, broader market sentiment remains positive. Barchart data indicates an 88% Buy opinion on Boeing shares, with a consensus price target of approximately $273, suggesting nearly 30% upside over the next 12 months.
