Bernstein selected Boeing as its top Aerospace & Defense pick for 2026, raising its price target to $298. Analysts argue the company's recovery is finally gaining real traction. They cite improving production on the 737 and 787 programs as key drivers for future cash generation and margin expansion.

The firm notes that demand for commercial jets will outstrip supply through the decade, making execution the primary differentiator. Bernstein sees the recent pullback in Boeing stock as a buying opportunity. They believe 777X certification delays are temporary and necessary spending to clear historically large order backlogs will pay off.

Management expects low single-digit billions in free cash flow for 2026, despite a $700 million DOJ headwind. Long-term projections suggest free cash flow could exceed $11 billion by 2028. On the defense side, the F-47 program win and high-margin Global Services should help the company return to positive cash generation by 2027.