Wall Street is increasingly cheering efforts by Boeing (BA.US) to turn around its business, with analyst optimism reaching its highest level in nearly four years this week. Following upgrades from Argus Research Corp. and BNP Paribas within just 10 days, the proportion of "buy" ratings for the aircraft manufacturer hit its highest point since October 2022 on Tuesday. Among the 32 analysts tracking the stock, none recommend selling it.

Ivan Fenseth, Chief Investment Officer and Research Director at Tigress Financial, commented, "After years of struggle, this is Boeing's moment to shine." Fenseth, who also rates the stock a "buy," has set the highest price target on Wall Street at $305. This surge in analyst optimism coincides with the U.S. Federal Aviation Administration (FAA) granting long-awaited certification last week for Boeing's 737 Max 7 jet, a nearly decade-long process overshadowed by two fatal crashes and quality lapses. Chief Operating Officer Stephanie Pope described it as a "critical moment for Boeing's recovery."

Boeing's "buy" ratings have reached their highest level since October 2022.

So far this year, Boeing's stock has largely moved sideways, rising just about 6%, while the broader market has jumped 13% over the same period. Its main competitor, Airbus SE, listed in Paris, has seen its shares gain around 8%. Meanwhile, Boeing's stock trades at roughly 1.7 times forward 12-month revenue, above its 10-year average of 1.5 times. Overall, investors who have endured a challenging few years remain cautious. From a series of crash incidents to the COVID-19 pandemic that nearly halted air travel, and an in-flight door panel blowout, Boeing has staggered through crises, making its stock a classic "show me the evidence" story where the recovery path often seems precarious.

However, market sentiment has slowly shifted over the past year, eventually leading to a capitulation last week from BNP Paribas analyst Matthew Exkes, previously the only one with a rating equivalent to "sell." He now offers one of the highest price targets for the stock. "The post-pandemic uncertainty era for Boeing is over," Exkes stated. He also expects consensus estimates for Boeing's free cash flow to begin rising after being "too low," and predicts the stock has the potential to nearly double from current levels by 2030.

Meanwhile, Argus analyst Christina Ruggieri, who upgraded the stock from "hold" to "buy" on Tuesday, cited expectations for a meaningful ramp in production. Crucially, as one of the global duopoly in aircraft manufacturing alongside Airbus, Boeing is well-positioned to benefit from a multi-year boom in global commercial aircraft demand and rising defense spending. Just last month, the company reported strong quarterly results, with free cash flow significantly exceeding expectations. "The market has been waiting for proof points on execution, and those signals are beginning to emerge," said Joe Gilbert, portfolio manager at Integrity Asset Management.

Boeing's stock price remains below pre-pandemic peaks.

Despite the recent surge in optimism, Boeing's shares still have a long way to go before reaching their all-time high of $440.62 hit in March 2019. Since then, the stock has fallen nearly 50%, while the S&P 500 has risen about 180%, the Dow Jones Industrial Average has doubled, and Airbus shares have gained nearly 90%. Analysts estimate Boeing will report around $2.44 billion in free cash flow this year, compared to $13.6 billion in 2018. Similarly, the company is expected to lose 83 cents per share, versus a profit of $16.01 per share in 2018.

Nevertheless, analysts and investors agree that early signs of a recovery are undeniable. "It might be too early to call it a 'new era,' but the shift in momentum is obvious," said Eric Diton, President and Managing Director of Wealth Alliance. "After some truly tough years, the company's momentum has turned positive this year."