Because of the 737 MAX saga and FAA scrutiny that has followed Boeing (BA), many people have labeled its products as troubled commercial airplanes. But that isn’t a complete picture, because Boeing is also a defense company, and analysts think that side of the business might turn around soon.
Boeing now holds the top contracts for two of the most advanced fighter jet programs the U.S. military has ever ordered. Both wins came while the stock was down roughly 16% year to date.
According to a Global Research note shared with me, Bank of America sees that weak share price as a favorable setup for patient shareholders.
Boeing’s dual fighter jet wins reshape its defense business
Boeing makes commercial jets, military aircraft, satellites, and space systems. In March 2025, the Air Force picked Boeing to build the F-47 under its Next Generation Air Dominance program.
And on Sept. 29, 2026, the Navy chose Boeing to build its sixth-generation jet, the F/A-XX, with a development contract worth more than $20 billion, Naval Technology reported.
Also read: SpaceX just won something that gives its investors hope
Boeing wasn’t the only one gunning for the contract. The Navy picked the company over Northrop Grumman.
“It’s an honor to be selected to produce the Navy’s first sixth-generation platform,” Steve Parker, CEO of Boeing Defense, Space & Security, said in a Boeing press release. “Delivering two advanced fighters in parallel was always our plan, and we invested accordingly.”
BofA believes both programs together could bring in more than $200 billion over their lifetimes.
Why Bank of America sees Boeing stock heading to $270
In the BofA note shared with me, Ronald Epstein, who has covered the aerospace sector at the firm since 2001 and is a former Boeing Phantom Works research scientist, kept his Buy rating and $270 price target on BA.
That price target suggests he sees the stock rising about 42% above its recent close of $190.37.
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Epstein believes the stock can climb so much because three major risks have been settled.
- The FAA has cleared a software problem that was affecting some of Boeing’s 737 planes.
- The company’s engineers signed a new work contract, which settled a risk of them going on strike, Reuters reported on Oct. 1.
- The newest version of the 737 that Boeing needs regulatory approval to sell is back on track to get certified.
“We haven’t been this bullish on Boeing in a very long time,” Epstein wrote amid all of this good news.
He also pointed out that Boeing now owns the strongest sixth-generation fighter jet portfolio in the industry. According to Epstein, “the stock is materially derisked,” and the risk-reward balance now favors shareholders willing to wait through more production bumps.
What everyday Boeing shareholders should keep in mind
BofA listed some of the main remaining risks the company faces. Boeing still has to prove it can produce 47 of its 737 planes and 10 of its 787 planes per month.
Any delay would mean less cash coming into the business, which will affect the money Boeing uses to pay down debt and eventually reward shareholders.
The company also has to continue rebuilding trust with regulators and investors after years of safety and disclosure problems.
If the contract wins play out as BofA expects, 2027 could be strong for Boeing. The company’s third-quarter report expected on Oct. 27 should show some signs of the turnaround to come.
