Boeing Reports $6B Q3 Loss: 'This Is The Bottom,' Says Analyst

Troubled aerospace giant Boeing Co. BA reported a $6 billion third-quarter loss on Wednesday, the company's largest since 2020, amid an ongoing labor strike and a company-wide turnaround effort. Analysts weighed in on the company's issues and what is next for Boeing. 

The Details: BofA Securities analyst Ronald Epstein pointed to Boeing stock's muted reaction to the company's earnings report as capturing investor sentiments of "1) This is the bottom and 2) There are plenty more skeletons in the closet for Kelly [Ortberg] to find."

The research firm said the most critical first step to make Boeing "great again" is ending the labor strike. The firm estimates the strike is costing Boeing approximately $50 million a day due to the halt in production and said a strike lasting 58 days would result in a financial impact of nearly $3 billion to the company. 

BofA analysts also see shoring up the balance sheet as key to Boeing's return to glory and now expects the company to raise between $18 billion and $20 billion through its recent mixed shelf offering. 

Boeing reported it is considering divesting non-core assets which BofA views as a good step towards the company reducing debt and strengthening its balance sheet. 

"We see this as a positive not only for offsetting cash-burn but for Boeing to refocus while transforming," the analyst wrote. 

BofA Securities maintained its Neutral rating and $170 price target on Boeing shares. 

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RBC Capital Markets analyst Ken Herbert pointed to Boeing's 2025 negative free cash flow forecast as the focus of the earnings call. The RBC analyst adjusted the firm's estimate to approximately negative $8 billion in 2025 and negative $2.6 billion in 2026 as Boeing indicated a return to positive free cash flow in the second half of 2026. 

Herbert noted CEO Ortberg's initial public comments were "very cautious" during Boeing's earnings call and expressed concerns that investors were looking for more clarity and specific timelines for a return to pre-strike production levels. However, the analyst said he remains optimistic Ortberg can right the ship at Boeing. 

RBC Capital reiterated its Outperform rating and $200 price target on Boeing. 

BA Price Action: According to Benzinga Pro, Boeing shares ended Thursday’s session 1.18% lower at $155.20.

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