Here's What the Boeing-Archer Aviation Deal Means for BA Stock

If there is one aerospace company that has been through a lot over the past few years, it's Boeing (BA). After some crashes and increased scrutiny from the Federal Aviation Administration (FAA), Boeing went into recovery mode under CEO Kelly Ortberg. Now, there is an indication the company may soon start cashing in on its ballooning backlog.

Boeing recently made a strategic move to sell three of its subsidiaries — Wisk Aero, SkyGrid, and Insitu — to Archer Aviation (ACHR). This brings in two supposed benefits for the aerospace giant.

First, it gives the company a chance to focus on its core operations. The deal also gives Boeing a 19.75% stake in Archer, which focuses on electric vertical take-off and landing (eVTOL) aircraft. Hence, while creating a leaner organization to achieve profitability, Boeing will be able to capitalize on the eVTOL market through Archer. 

This news also comes after the FAA recently certified Boeing’s 737 MAX 7 aircraft. This approval has been long-awaited, while the company is reportedly close to winning certification for the 737 MAX 10 as well.

With that backdrop in mind, let's take a closer look at Boeing and BA stock.

About Boeing Stock

Boeing is a leading global aerospace company that designs, manufactures, and services commercial airplanes, defense products, and space systems. Headquartered in Arlington, Virginia, the company has a market capitalization of $184.3 billion. 

BA stock has fallen less than 1% over the past 52 weeks as investors remain cautious about ongoing production bottlenecks, FAA oversight, and quality-control issues that continue to limit how quickly the company can convert its large order backlog into cash flow, even as deliveries and free cash flow improve. Shares are also up 6% year-to-date (YTD). The stock reached a 52-week high of $254.35 on Jan. 27, but shares are currently down 9% from that level. 

Boeing has a price-to-sales (P/S) ratio of 2 times, which is relatively in line with the industry average.

Boeing Posts Revenue Gain and Positive Cash Flow in Q2

Boeing reported second-quarter revenue of $24.56 billion, up 8% year-over-year (YOY) and “reflecting 171 commercial deliveries,” as well as favorable working capital. The top-line figure also surpassed expectations, as Wall Street analysts had expected $24.05 billion in revenue.

Due to favorable working capital timing and higher deliveries, operating cash flow increased by a whopping 501% YOY to $1.36 billion, while the company earned positive free cash flow of $631 million. While Boeing is still showing losses, the magnitude has decreased compared to the prior-year period. Core loss per share dropped from $1.24 to $0.76 in Q2, although Wall Street analysts had expected a smaller loss per share of $0.34. 

The biggest takeaway from the Q2 results remains Boeing’s ballooning backlog, which climbed to $715 billion by the end of the quarter. This included 6,200 commercial airplanes valued at a record $597 billion. This backlog shows the revenue potential Boeing currently sits on, and that the company is still posting net orders. 

Wall Street analysts remain optimistic about Boeing’s ability to cut its losses. For fiscal 2026, loss per share is projected to improve 92% YOY to $0.88, followed by a 547% improvement to EPS of $3.93 in fiscal 2027. Analysts also expect loss per share to improve 98% YOY to $0.18 for the current quarter. 

What Do Analysts Think About Boeing Stock?

This month, Tigress Financial raised its price target on BA stock to $305 while maintaining a “Buy” rating. Analysts cited the company’s backlog and production recovery. Boeing also remains heavily influential in the aerospace and defense markets, which supports its long-term cash flow improvement. 

Meanwhile, BNP Paribas analysts raised BA stock from “Underperform” to “Outperform” and increased the price target from $230 to $300. The sharp turnaround is due to the company’s growing confidence in aircraft certifications, inventory deliveries, and lower program losses. This raises the possibility of Boeing experiencing a much-awaited cash flow recovery.

Finally, JPMorgan kept an “Overweight” rating on Boeing while raising the price target from $270 to $290.

Wall Street remains bullish on BA stock with a consensus “Moderate Buy” rating overall. Of the 28 analysts rating the stock, 19 have a “Strong Buy” rating, three analysts have a “Moderate Buy,” five analysts have a “Hold” rating, and one has a “Strong Sell” rating. The consensus price target of $272.81 represents potential upside of 18% from current levels, while the Street-high price target of $305 indicates as much as 32% upside from here.