Boeing Price Target Slashed To $235 By RBC – Firm Says Lingering Defense Budget Uncertainty Will Remain A Headwind

RBC lowered its Boeing price target to $235 from $265 while maintaining an ‘Outperform’ rating, according to The Fly.

• The firm noted that the midterm elections should provide better clarity, but uncertainty around spending beyond fiscal 2027 will remain a headwind.
• Nikkei Asia reported that Boeing expects to begin 737 MAX deliveries to ANA in December, with the airline planning to deploy up to 42 737-8 aircraft and conducting on-site inspections to verify the planes meet its standards.
• Koyfin data shows that 26 of the 29 analysts covering Boeing rate the stock ‘Buy’ or ‘Strong Buy’.

Boeing Co. (BA) shares were in focus on Thursday after RBC Capital lowered its price target as part of a broader research note previewing third-quarter results for large-cap aerospace and defense companies.

According to The Fly, RBC lowered its price target to $235 from $265 while maintaining an ‘Outperform’ rating.

BA shares traded about 1% higher at the time of writing.

RBC Flags Defense Budget Uncertainty

RBC said lingering uncertainty in the defense budget will remain a headwind, even as third-quarter bookings are expected to be strong.

The firm noted that the midterm elections should provide better clarity, but uncertainty around spending beyond fiscal 2027 will remain a headwind, according to The Fly.

RBC also does not expect an increase in Boeing’s commercial delivery outlook, although it believes aerospace aftermarket results will be strong, even against elevated expectations, The Fly reported.

Other Analysts Weigh In

According to The Fly, Bernstein lowered its Boeing price target to $278 from $298 on Monday, Oct. 12, while maintaining an ‘Outperform’ rating. The firm said Boeing’s share price had remained flat over the previous three years, while the S&P 500 had risen 80%.

Bernstein said Boeing had made progress on key commercial and defense programs under CEO Kelly Ortberg, but issues involving labor, certifications and production processes persisted. The firm also said it lacked clear visibility into Boeing’s cash flow outlook.

Last week, TD Cowen cut its Boeing price target to $240 from $250 while maintaining a ‘Buy’ rating, describing the aerospace sector’s de-rating as “disorderly” and noting opportunities amid the pullback, according to The Fly.

According to Koyfin, 26 of the 29 analysts covering the stock rate it either ‘Buy’ or ‘Strong Buy’.

Boeing’s Q3 Deliveries

Boeing announced 161 commercial aircraft deliveries in the third quarter on Oct. 13, including 124 737 aircraft and 22 787s. Its Defense, Space & Security division recorded 33 deliveries. Boeing said the figures would not be considered final until its quarterly financial results were issued.

Separately, Nikkei Asia reported on Oct. 14 that Boeing is set to begin delivering 737 MAX aircraft to Japan’s All Nippon Airways (ANA) in December. ANA plans to deploy up to 42 737-8 aircraft and has inspectors stationed at Boeing’s Renton, Washington, facility to check aircraft against its own standards before delivery.

Boeing is set to report third-quarter 2026 results before the market opens on Oct. 27, with analysts expecting revenue of about $25 billion and a loss of $0.02 per share, according to Fiscal AI.

How Retail Views BA

Retail sentiment on Stocktwits remained ‘Bearish,’ while the participation ratio was ‘Extremely High’ over the past 24 hours.

BA shares have dropped over 13% year-to-date.

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