Is Boeing Stock Going to $225? 1 Wall Street Analyst Thinks So.

Despite the recent dings to its reputation, the company continues to sell aircraft.

These days, it seems that nearly all the news about beleaguered aerospace giant Boeing (BA -2.09%) is negative. Quality-control issues, whistleblower controversies, and other pieces of bad press have badly affected sentiment on the company and its stock.

Not every headline was discouraging, though. In mid-May, one analyst following Boeing’s fortunes reminded the market that he remained bullish on the shares. Perhaps that counter-intuitive evaluation is the correct one for this beaten-down stock.

Undeterred by recent delivery numbers

The analyst staying resolutely bullish was Deutsche Bank‘s Scott Deuschle. In a Boeing update, he reiterated his buy recommendation on the shares with a price target of $225 apiece. That implies a 27% upside within the next 12 months from the current price.

Deuschle’s latest analysis of the company came after the release of month-to-date sales data. According to these, from May 1 to May 12, Boeing delivered six commercial aircraft, comprised of four 737 Max planes and two 787s.

The prognosticator said that all four of the 737 Max planes seem to have come off the production line in recent weeks. On a slightly dimmer note, according to his research, the pair of 787s came from long-term storage.

“Overall, this looks like a slow start to the month, with month-to-date deliveries tracking below February, March, and April over the same initial 12-day stretch,” Deuschle wrote.

Too many concerns for a buy

Although the analyst remains bullish on Boeing, the tone of his latest note doesn’t feel overwhelmingly positive — particularly since he’s essentially saying that the recent delivery count is weak.

If I were a Boeing shareholder or someone considering the stock, I’d be concerned not only with that, but also with the other factors currently dampening the price. Those quality-control struggles are concerning, and the company doesn’t seem to be addressing them with great urgency.

While Boeing is being weighed down with both fundamental and reputational issues, I don’t envision it flying too high in the proximate future. I don’t share Deuschle’s bullish stance on the stock. In fact, I’d probably sell it if it were in my portfolio.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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