After navigating a prolonged period of turbulence, shares of aerospace giant Boeing are exhibiting robust signs of a sustained recovery. A decisive shift in sentiment among major financial institutions is underway, fueled by tangible regulatory progress and an improving financial outlook. As the company moves to finalize a critical acquisition and receives clear production guidance, Wall Street appears to be restoring its faith in the aviation leader’s long-term strategy.
Regulatory Clarity and Production Roadmap Provide Foundation
A significant catalyst for the renewed optimism stems from clear directives issued by the U.S. Federal Aviation Administration (FAA). The regulator has authorized an increase in 737 MAX production to 42 aircraft per month starting October 2025, with a target of reaching 53 units monthly by the end of 2026. Furthermore, plans are in place to ramp up monthly output of the 787 Dreamliner to eight planes during 2026. These defined targets are granting analysts the ability to construct more reliable revenue forecasts for the first time in years.
Concurrently, the pending $4.7 billion acquisition of Spirit AeroSystems is nearing completion, having received conditional approval from the U.S. Federal Trade Commission (FTC). This strategic move is viewed as pivotal, as it will return direct control over the manufacturing and quality of essential fuselage components to Boeing, aiming to resolve persistent supply chain challenges.
Major Asset Managers Build Substantial Positions
This improving fundamental picture has triggered aggressive portfolio adjustments by prominent institutional investors. Recent filings reveal a broad trend of accumulation. Notably, asset manager Amundi dramatically increased its stake by 75.5% in the second quarter of 2025, building a position now valued at approximately $376 million.
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This activity is far from isolated. Other heavyweight investment firms, including Vanguard, The Bessemer Group, and Prudential, have also significantly expanded their holdings. The collective movement has resulted in institutional investors now controlling 64.82% of all outstanding Boeing shares—a strong indicator that the market views management’s stabilization plan as credible for the long term. The share price, gaining 6.33% over the past week to reach 173.92 euros, has reflected this positive reassessment.
Financial Trajectory and Competitive Landscape Shift
Chief Financial Officer Jay Malave has outlined a fundamental turnaround in the company’s cash generation. Whereas 2025 is still expected to see negative cash flow, management forecasts a return to positive free cash flow (FCF) in 2026, projected to be in the low single-digit billions of dollars. Rating agency S&P Global has already responded by affirming a stable outlook, estimating FCF at around $3 billion—a level seen as essential for debt reduction.
The competitive context adds another layer to the story. As Boeing makes tangible progress, its primary rival Airbus is contending with quality-related supply chain issues that threaten its delivery targets for 2025. This divergence is not lost on market participants. The confluence of rising production rates, the strategic Spirit AeroSystems integration, and the anticipated return to positive cash flow now forms the core thesis for the stock’s continued advancement. On average, market researchers see a price target exceeding $230 per share, suggesting further potential remains.
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