The worst part about economic wars, such as today’s trade tariff wars, is the uncertainty of where the next headline might come from. During a week of tariff exemptions and negotiations between the United States and China, President Trump decided to start easing off the gas to move things forward, and that is when China decided to launch the latest round of bans and impacts for one of the transportation sector’s largest and most important names.
After launching the latest round of tariffs on China’s exports, Asia’s powerhouse decided to ban all deliveries coming out of Boeing Co. (NYSE: BA), an unexpected move that seems to aim at the stock that has managed to end its bearish spell over the past couple of quarters. However troublesome this may seem at first, there are plenty of reasons for investors to remain optimistic about this company moving forward.
Some of these reasons come from Wall Street analysts leaning on the hard facts and figures; others come from the more subtle and encrypted ways the market likes to tell a story. All told, there are some initial thoughts and reactions as to whether Boeing’s competitor Airbus (OTCMKTS: EADSY) might be the one to pick up where Boeing left off in the case of China’s supply gap now that it has banned Boeing from operating in its transportation market.
Why Boeing’s Finances Will Likely Be Okay
Right after Chinese officials announced they were banning Boeing deliveries, some analysts decided to pick up the low-hanging fruit and inform the broader markets about just how deep of an impact this newht have on the company’s financials development mig.
According to Goldman Sachs and Morgan Stanley analysts, Boeing’s share of revenue from Chinese orders accounts for approximately 2% of the entire pie. This conclusion cites past orders and the projected backlog through 2030.
Understanding that this fear and uncertainty might not be realized after all, investors can lean on a more optimistic outlook for Boeing in the coming months, one in which the company can emerge unaffected by all the speculation and economic retaliation.
That being said, it is reasonable to expect Wall Street earnings per share (EPS) forecasts to become a reality. As of today, these forecasts suggest that Boeing can report up to $0.03 in net EPS by the fourth quarter of 2025, which would be a significant jump from today’s reported net loss of $1.60 per share.
This swing into profitability again might be enough to set the stock on a new path, especially now that it trades at only 79% of its 52-week high, leaving plenty of room for the price to move higher from here on the right premise and narrative.
Optimism Remains for Boeing Stock
[content-module:Forecast|NYSE:BA]As of February 2025, analysts from Citigroup decided to reiterate a Buy rating on Boeing stock while also boosting their valuation targets to a high of $210 per share. Calling for a new 52-week high to be made in a stock that has been the subject of such bearish price action isn’t common practice amongst analysts, so it means a lot more than ever to see optimism.
More than that, this target would call for Boeing to rally by as much as 13% from where it trades today, a welcomed double-digit upside potential in the middle of all the trade tariff uncertainty that is being created. Investors can reiterate this story and sentiment in other ways, and that is through the way markets are starting to value Boeing stock today.
On a forward P/E basis, markets are now willing to pay up to 37.7x compared to EPS forecasts for 2026, which is significantly above the transportation sector’s average and Airbus’ multiple of 21.7x. While some value investors might call this expensive, seasoned operators will remind them that markets always have a good reason to pay up.
And that reason is that EPS growth and the trade conflict clearing up inevitably will likely bring Boeing stock to higher prices, a view that has been spreading to more than just the trading desks on Wall Street today.
Over the past quarter, up to $8.8 billion of institutional capital made its way into Boeing stock as an optimistic bet on higher prices coming ahead. More than that, the latest quarter (made up of April 2025 so far) has also reported up to $229 million in further purchases.
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