Is Boeing Stock a Top Pick for 2026?

Core Viewpoint - Analysts at J.P. Morgan have raised Boeing's price target to $245, indicating it as a top pick in the aerospace sector, while cautioning investors about long-term concerns [1] Group 1: Stock Performance - Boeing's stock has increased nearly 21% in 2025, outperforming the S&P 500 by a few percentage points year to date, reflecting positive production and delivery efforts of the 737 MAX [2] - The current stock price is $218.16, with a market capitalization of $171 billion [3] Group 2: Production and Delivery - The ramp-up of 737 MAX production is crucial, with Boeing stabilizing production at 38 units per month in 2025 and receiving FAA approval to increase to 42 units per month [13] - Boeing has an order book of over 4,700 737 MAX aircraft, which is a key management objective to fulfill [14] Group 3: Defense, Space & Security (BDS) Segment - The BDS segment has returned to profitability with a 1.9% operating profit margin, despite ongoing challenges with fixed-price development programs [10] - The Air Force has delayed the first delivery of two Air Force One jets to mid-2028, which may lead to cash outflows [12] Group 4: 777X Program - The delivery of the 777X has been pushed back to early 2027 due to certification delays and technical issues with the GE9X engine, resulting in a $4.9 billion noncash charge [9][8] - The 777X program is critical for Boeing's future, as it is expected to drive a cycle of wide-body investment [5]