Boeing’s free cash flow target of $10 billion is delayed to 2027-28 as Wells Fargo downgrades the stock, citing $30 billion equity raise needed to address debt before new aircraft development.
Bollywood Fever: Boeing’s ambitious goal of achieving $10 billion in annual free cash flow may face a significant delay, potentially pushing the target to 2027-28.
Wells Fargo has downgraded Boeing’s stock to “underweight” and lowered the target price to $119, representing a 32% downside from its last closing price. This led to a more than 8% drop in Boeing’s shares, hitting a near two-year low.
Lead analyst Matthew Akers highlighted Boeing’s hefty $45 billion net debt as a primary concern, stating that the planemaker must address this financial burden before embarking on its next aircraft development cycle. Akers predicts that cutting the debt will likely consume Boeing’s cash flow through 2030.

The company has been struggling to recover from a crisis triggered by a mid-air accident in January, which resulted in regulatory restrictions on its 737 MAX production.
These challenges have further pressured Boeing’s free cash flow, making the road to financial stability even steeper.
“Given a likely new aircraft launch in the next few years, Boeing will need to shore up the balance sheet sooner,” Akers noted, estimating a $30 billion equity raise will be necessary to achieve zero net debt by 2027.
Boeing responded by referencing CFO Brian West’s comments during a July earnings call, where he emphasized the company’s commitment to managing its balance sheet prudently and supplementing liquidity as needed. The company had previously outlined a target of $10 billion in annual cash flow by 2025 or 2026.
Akers also suggested that if Boeing were to delay new aircraft development for several more years and focus solely on paying down debt, its free cash flow per share could grow to approximately $20 this decade. However, this strategy could risk losing market share to rival Airbus SE in the long run.
Boeing’s stock has already seen a significant decline this year, with shares losing nearly 33.5% of their value in 2023.
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