Why This Investor Plans To Hold Boeing Stock Despite Increasing Omicron Variant Concerns

Boeing Co BA was named a top idea at Wells Fargo Tuesday. The firm reiterated its Overweight rating and $272 price target.

Hightower Advisors' Stephanie Link agreed with Wells Fargo's assessment and plans to continue to hold the stock.

"I do think there's value there," Link said on CNBC's "Fast Money Halftime Report."

Boeing has a free cash flow yield of 7% and is expected to generate about $11 billion in free cash flow by 2024, Link said. The catalyst for increasing free cash flow is the China certification of the 737 Max.

A third of the 737 Max aircraft in inventory are for Chinese companies, so "this is a very big announcement when it comes and I think it's coming soon," Link said.

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She noted Boeing is a reopening name and when COVID-19 concerns surface, Boeing is likely to move on the news. On the contrary, when concerns wane, Boeing is a beneficiary.

"On days that you think we are going to reopen fully and we're not going to have closures and problems with vaccines and we don't have problems with COVID strains, you know, it's going to trade on that."

A new strain of the coronavirus was detected in South Africa last week. Known as the omicron variant, the coronavirus strain has more than 30 mutations on the spike protein that binds to human cells.

To put that in perspective, other variants have less than 20 mutations. The mutations suggest higher transmission rates and potentially reduced antibody protection.

BA Price Action: Boeing has traded as high as $278.56 and as low as $191.85 over a 52-week period.

The stock was down 1.88% at $194.74 at time of publication.

Photo: courtesy of Boeing.