Key Takeaways
- Citi increased Boeing’s price target from $256 to $260 while maintaining a Buy rating, viewing the aerospace defense decline as a strategic entry point
- The defense division delivered $7.6 billion in Q1 revenue, marking a 21% year-over-year increase with a historic $86 billion backlog
- Boeing exceeded Q1 earnings projections with an EPS loss of -$0.20 versus the anticipated -$0.68, while revenue climbed 14% to $22.22 billion
- A 200-plane order from China was officially confirmed, and director Bradley Tilden acquired nearly $300,000 in company shares
- Challenges persist, particularly around 777X certification hurdles and potential issues with fixed-price development agreements
Boeing (BA) stock started Friday’s session at $219.18, hovering marginally above its 200-day moving average of $218.62, as investors increasingly scrutinize the aerospace giant’s defense operations.
This week, Citi elevated its Boeing price target to $260 from the previous $256 mark while keeping its Buy recommendation intact. The financial institution characterized the recent aerospace and defense sector downturn as an attractive entry point, highlighting Boeing’s defense division’s positive trajectory as central to the turnaround narrative.
The first quarter figures support this perspective. Boeing’s Defense, Space & Security division generated $7.6 billion in quarterly revenue, representing a 21% year-over-year jump. Operating profit in this segment increased to $233 million compared to $155 million in the prior year period, while the backlog reached an unprecedented $86 billion, with international customers accounting for 27% of the total.
Companywide revenue for Q1 totaled $22.22 billion, reflecting a 14% annual increase and surpassing analyst projections of $22.15 billion. The earnings per share loss of -$0.20 significantly outperformed the consensus forecast of -$0.68, providing optimistic investors with encouraging data points.
Boeing’s aggregate backlog expanded to a record-breaking $695 billion.
However, the commercial aviation segment continues facing headwinds. Boeing recorded a GAAP loss of 11 cents per share, and the 777X certification process is encountering obstacles, with “hot brakes” issues receiving more attention than initially anticipated. This development pressured the stock price and reignited execution concerns.
Defense Division Strengthens Investment Thesis
Beyond quarterly performance metrics, Boeing secured a seven-year agreement with the U.S. Department of War during April to increase PAC-3 seeker production threefold for Patriot missile interceptors. Boeing has invested over $200 million in expanding manufacturing capacity at its Huntsville, Alabama facility since 2024.
The proposed fiscal 2026 defense budget allocates $2.5 billion toward missile and munitions manufacturing, maintaining favorable government spending trends.
Additionally, Boeing received the engineering and manufacturing development contract for the F-47 in March 2025, the Air Force’s Next Generation Air Dominance initiative — characterized as the world’s inaugural sixth-generation fighter jet. This program provides the defense segment with a substantial long-term foundation.
Chinese Aircraft Deal and Insider Transactions Bolster Sentiment
China officially confirmed a 200-aircraft Boeing purchase as part of comprehensive U.S.-China trade negotiations, unlocking a previously stalled market. While some market participants anticipated a more substantial order, potentially capping immediate upside, the agreement nonetheless enhances demand predictability.
Regarding institutional activity, Connors Investor Services established a new position valued at approximately $10.46 million during Q4. AXA S.A. expanded its holdings by more than 1,200%. Institutional ownership currently stands at roughly 64.82% of outstanding shares.
Director Bradley D. Tilden purchased 1,370 Boeing shares at $218.50 apiece on May 20th, totaling $299,345, according to SEC filings documenting the insider transaction.
The consensus analyst recommendation registers as “Moderate Buy” with a mean price target of $259.80.
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