Boeing (NYSE:BA) shares were cut to Hold from Buy at Melius Research, with the firm maintaining a $209 price target on the stock.
Analysts at Melius Research cited "too many overhangs" as their reason for downgrading shares of the plane maker.
"Although there is strong demand for Boeing’s commercial aircraft, execution issues, a slower-than-expected 737 production ramp, and continued losses at Boeing Defense mean that the $10B of FCF that Boeing and consensus are looking for in 2026 is optimistic," said the firm.
"Overall, we believe Boeing is headed for, and in need of, a multi-year restructuring," added the investment research firm.
Analysts believe the negative newsflow is also unlikely to abate and will continue to be an overhang on the stock, which they see as being close to fair value on their 2026 free cash flow estimate of $8.9 billion, which is $1.1 billion below consensus and management’s target.