Boeing was supposed to experience a year of revitalization; however, it has faced one of the most significant stock declines since 2008. Analysts on Wall Street are preparing for a subdued recovery in stock prices by 2025, indicating a cautious outlook for the aerospace giant.

This year, Boeing's stock has plummeted by 35%, ranking among the 20 S&P 500 companies with the steepest dropAlthough the stock has shown signs of stabilization in the past month, investor sentiment remains tepidMany have expressed concern about a multitude of crises that unfolded in 2024, shaking their confidence in Boeing’s future amidst potential risks arising from renewed trade tensions.

Eric Clark, portfolio manager at Rational Dynamic Brands Fund, aptly pointed out, “At this moment, avoiding the news is a victory for Boeing.” This phrase encapsulates the precarious position the company finds itself in, navigating under the attentive glare of public scrutiny.

As 2024 ushered in, it seemed Boeing was tentatively emerging from the repercussions of two catastrophic plane crashes in 2018 and 2019, coupled with the global downturn in travel caused by the pandemic

The company made significant strides towards alleviating tensions with China, which resulted in a surge of plane orders, sending stock prices to a two-year peakAnalysts were initially optimistic, with no recommendations to sell the stock.

However, the situation took a turn in January when an incident involving a Boeing aircraft during an Alaska Airlines flight revealed serious flawsA plug on the door exploded mid-air, prompting the public to question Boeing’s corporate practices severelyIn the aftermath, there was an outcry leading to major management reforms, including the departure of the CEO and serious allegations raised by whistleblowersThis series of events sparked a protracted labor strike and a substantial cash burn, projected to persist until 2025.

These developments have reshaped Wall Street's profit expectationsAccording to Bloomberg, analysts initially anticipated an earnings-per-share of $4.18 for Boeing this year, following four consecutive years of losses

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Current projections, however, suggest a staggering loss of $15.89 per share—the largest since 2020. Fears have also emerged regarding forecasts for 2025, 2026, and 2027, which have dropped by about 50% or more compared to figures from a year ago.

This compelling narrative explains the overarching skepticism among analysts regarding the recent recovery in Boeing's stock priceThe average target price over the next 12 months suggests only a modest 7% increase from last Friday's close of $169.65.

The company, headquartered in Arlington, Virginia, has chosen to remain silent on these matters.

Looking ahead, turbulence appears inevitable.

As 2025 looms, a significant concern revolves around potential tariff implementations that could place enormous strain on Boeing's expansive global supply chain

There is a prevailing belief that Boeing, alongside manufacturing titans like Caterpillar and Deere, will be at the frontline of any resulting trade war.

However, Boeing's principal worry is not only the impacts of tariffs but also a noticeable slowdown in productionFollowing the Alaska Airlines incident, the company has struggled to heighten quality control, alongside facing challenges from a labor strike that concluded in NovemberThis combination has adversely affected cash flow and weakened its competitive position against Airbus, which, according to Bloomberg intelligence, accounted for nearly 60% of last year's global commercial aircraft backlog.

Most crucially, Boeing has not developed a brand-new aircraft in decades, which CEO Dave Calhoun identifies as a primary objectiveFor investors and analysts looking toward 2025, tangible signs that Boeing can stabilize the production of high-quality aircraft are paramount

The demand for new aircraft remains robust, particularly fueled by a surge in air travel in emerging markets.

Last month, JPMorgan analyst Seth Seifman remarked in a report, “The urgent task is to meet this demand by incrementally ramping up the production of flawless aircraftThis is no easy feat, and results may not be immediate, but we do see potential progress on the path toward long-term value for Boeing by 2025.”

Recent events have indicated the stock's potentialThe announcement of Boeing resuming assembly of its best-selling 737 Max significantly contributed to the stock experiencing its largest weekly gain since mid-2023.

Boeing's sturdy standing as one of the two largest aircraft manufacturers explains why it retains a market capitalization exceeding $125 billionThe backlog of aircraft orders stands at over $500 billion, showcasing significant future revenue potential