Boeing Co. (NYSE:BA) shares fell Thursday after the aerospace giant reported another uneven quarter marked by solid commercial momentum but lingering turbulence from its 777X program.

Bank of America Securities analyst Ronald J. Epstein reaffirmed a Buy rating and $270 price forecast, saying Boeing’s recovery continues to balance triumphs and trials.

Epstein said operational stability is improving across Boeing’s commercial business, supported by the Federal Aviation Administration’s approval to raise 737 output to 42 jets per month and maintain 787 production at seven per month.

Related: Boeing’s 777X Setback Deepens Losses Even As Jet Deliveries Surge

These developments, he noted, reflect steady progress in restoring execution discipline and supply chain reliability.

However, a $4.9 billion charge tied to the 777X program and the aircraft’s delayed entry into service to 2027 continue to pressure sentiment.

Even so, Epstein expects 737 production to reach 47 jets per month by late 2026 and 787 output to climb to 10 per month by 2027, reinforcing Boeing’s long-term growth path.

The analyst forecasts 2026 free cash flow of $3.7 billion, down from a prior $4.7 billion, and projects it will rise to $8 billion by 2028 as deliveries normalize.

Epstein said his $270 price objective is based on normalized free cash flow of $10 per share and valuation parity with the S&P 500 multiple.

While acknowledging risks from program delays and cost overruns, Epstein added that Boeing’s improving operations, $600 billion backlog, and the planned Spirit AeroSystems acquisition support a steadier flight path through the decade.

Price Action: BA shares were trading lower by 4.44% to $204.11 at last check Thursday.

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