One Wall Street Analyst Believes Boeing Stock Has 22% Upside

Boeing(NYSE. BAThe problem is due to the quality of the aircraft, the turbulence in the management, and recently, the lack of a new government.Southwest Airlines (NYSE: LUV)Only 20 Boeing airplanes will be delivered this year.(Lower than it had expected85(Rack) reports that shares fell for the 10th consecutive day on Friday.JPMorganThe company's target price for Boeing was lowered to $210 per share on Friday, adding insult to injury.

But here's the good news: Boeing's stock is currently trading at $170 per share. If it rises to $210, the stock price willrise 23.5%!

Is Boeing stock worth buying?

So despite Boeing's problems, JPMorgan still maintains that Boeing stock is a blue-chip buy. Now that Boeing has released figures for the first quarter of 2024 - totaling 83 aircraft deliveries - investors may have accepted that Boeing is not building airplanes as fast as it used to," said Seth Seifman, an analyst at JPMorgan, in a Friday commentary on TheFly.com. The fact that Boeing isn't building airplanes as fast as it used to. And Boeing won't be making as much money, or as fast, as some investors had hoped.

This is obviously not good news for Boeing stock. Boeing's decision to slow down production and take more time to ensure that its airplanes are in production means that it will take longer for Boeing to process the backlog of 5,668 airplanes that have been ordered but not yet delivered. If Boeing only earns the $2.82 per share that analysts are currently forecasting for 2024, Boeing's shares would trade at a staggering 60 times their value.

However, on the bright side, this means Boeing arguably has many more years of rapid growth ahead of it. These 5668 airplanesfinal It still needs to be built. Once Boeing gets its ducks in a row, its earnings will grow rapidly, potentially reaching as high as nearly $16 per share by 2028. In short, this is why Boeing is a buy: It's not that Boeing's current P/E of 60x is cheap (because it's not). It's that in four years Boeing could bebecomeIt's so cheap that it's now trading at only 10 times 2028 earnings.

I hope so.

Should you invest $1,000 in Boeing now?

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Rich Smith does not own any of the aforementioned stocks.The Motley Fool recommends Southwest Airlines.The Motley Fool has a disclosure policy.

A Wall Street Analyst Says Boeing Stock Has 22% of Upside was originally published by The Motley Fool.