Boeing Just Received a Price Target Increase from Morgan Stanley

AMorgan Stanley analyst Rajeev Lalwani has increased his price target on Boeing Co. this week from $450 to $500.

According to the analyst, who has an “overweight” rating on the company, there will be more upward momentum in the company’s shares and that there is “a clear path to $500” for the stock. Shares of Boeing have already ran up 30% year-to-date.

In a note to investors, Lalwani cited his belief on several things: the stable commercial aerospace backdrop, a healthy free cash flow yield and positive upcoming data points that include a potential China trade resolution, a 737 rate hike and Boeing’s New Midsize Airplane launch. The analyst believes the launch of the airplan will be this summer at the Paris Air Show.

“To start, the market at large has priced-in a level of benefit associated with a trade resolution with China. In addition we note that the broader (Aerospace and Defense) sector, including Boeing, has observed limited P&L pressure from tariffs and tensions to date,” wrote the analyst.

According to Lalwani, there is also a chance for a boost in orders from the region.

Boeing has been the top gainer on the Dow Jones Industrial Average this year.

Disclaimer: We have no position in Boeing Co. (NYSE: BA) and have not been compensated for this article.