Buy the Boeing Dip Even on Tariff and Bans?

Core Viewpoint - Boeing faces challenges due to China's recent ban on deliveries, but analysts suggest that the financial impact may be limited, allowing for a more optimistic outlook for the company moving forward [2][4]. Financial Impact - Analysts from Goldman Sachs and Morgan Stanley estimate that Boeing's revenue from Chinese orders constitutes approximately 2% of its total revenue, indicating that the ban may not significantly affect overall financial performance [4]. - Current forecasts predict that Boeing could report a net earnings per share (EPS) of $0.03 by Q4 2025, a notable improvement from a reported net loss of$1.60 per share [5]. Stock Performance and Forecast - Boeing's stock is currently trading at $156.73, which is 79$198.95, indicating a potential upside of 26.94% based on 23 analyst ratings [7]. - Citigroup analysts have reiterated a Buy rating on Boeing, raising their valuation targets to a high of $210 per share, reflecting optimism despite recent bearish trends [7][8]. Market Sentiment - Institutional investors have shown confidence in Boeing, with$8.8 billion invested in the stock over the past quarter, alongside an additional $229 million in purchases reported in April 2025 [10]. - The market is currently valuing Boeing at a forward P/E ratio of 37.7x for 2026, which is significantly higher than the transportation sector average and Airbus' multiple of 21.7x, indicating strong investor sentiment [9].