BofA Securities reiterated its confidence in Boeing Co (NYSE:BA) on Wednesday.

The bank maintained a Buy rating and a $270 price forecast. This follows a fireside conversation with Boeing CFO Jay Malave at the BofA Global Industrials Conference in London.

Production Rates Hold Firm

Malave noted steady production performance across key programs. The company remains focused on internal safety and quality Key Performance Indicators (KPIs). On the 737 program, a recent wiring issue caused a modest cash flow impact.

“Twenty-five aircraft requiring three days of rework each,” the note detailed. This shifts 10 deliveries from the first to the second quarter. Boeing still targets 120 units of 737 deliveries for the first quarter. It aims for approximately 500 total deliveries for 2026.

Spirit Integration Weighs on Margins

The integration of Spirit AeroSystems will impact near-term profitability. BofA expects Boeing Commercial Airplanes (BCA) margins at negative 8% this year. Previously, analysts expected flat or positive margins.

Management views these pressures as “transitory” in nature. Cost normalization should drive margins back to positive territory by 2027.

Certification Timelines Remain on Track

Certification for the 737-7, 737-10 and 777X stays on schedule. System-level testing should finish by mid-year.

The 777X remains aligned with a 2027 certification goal. Boeing plans long-term build rates of five aircraft per month for that wide-body program.

Defense Segment Shows Momentum

Malave highlighted opportunities in Boeing Defense, Space & Security (BDS) tied to anticipated growth in the U.S. defense budget.

Recent program reviews support “achievable assumptions” for the segment.

BA Stock Price Activity: Boeing shares were down 1.99% at $206.63 at the time of publication on Wednesday, according to Benzinga Pro data.

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