Boeing stock will return to its year-to-date high

Boeing Co (NYSE: BA) has been a disaster for its shareholders in 2022, now down nearly 40% year-to-date, but a Jefferies analyst says a full recovery is on the cards.

Boeing Co could be a $225 stock

On Tuesday, Shelia Kahyaoglu said the stock could jump to $225 – up 60% from here, as she reiterated her “buy” rating on Boeing. Explaining her bullish call, she wrote:

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We estimate total net [aircraft] orders of 800 in 2022, down modestly from 986 in 2021. Potential orders are 82% narrowbodies, with Airbus accounting for 24% and 25% to Boeing. [This] compares to 66% of total passenger fleet composed of narrowbodies today.

In April, Boeing reported its financial results for the first quarter that came in significantly below the Wall Street estimates. Shares are up 20% already over the past two weeks.

Jim Lebenthal agrees with the bull view

Cerity Partners’ Jim Lebenthal also agrees that Boeing is a quality name that’s trading at a deep discount right now. Agreeing to Jefferies’ constructive view on CNBC’s “Halftime Report”, he said:

Boeing has been troubling, but I think it’s ready to come out. The bottom line is airlines need planes. The 737 Max is fuel efficient. They can only get so many A320s in the near term. So, they need 737 Max.

Lebenthal, who currently owns shares of Boeing Co, expects the Federal Aviation Administration (FAA) to clear 787 for deliveries by mid-July that, he says, could be another significant tailwind for the stock.