Sam Boughedda

Investing.com — Boeing Co (NYSE:) shares have been upgraded for the second time in a week after JPMorgan analyst Seth Seifman raised them to overweight from neutral based on a “fairly defined catalyst path.”

The analyst stated in a research note that China’s MAX certificate is the “critical first catalyst” and should be completed soon. But, unwittingly for Seifman, it may come even sooner than he expected — a few hours after the JPMorgan note, Chinese media company Caixin Global reported that the Chinese regulator is satisfied with Boeing’s proposed 737 Max fixes.

Boeing shares rose to $231.50 in early morning trading, but the stock closed down just 0.2% at $227.20.

Seifman has a second catalyst: the 787 delivery halt. This is expected to last into 2022.

Boeing will be able to deliver more aircraft (and ultimately 787s) per year than production, win new business orders and generate cash. “These are just two of the things Boeing could do to increase investor confidence. Seifman stated that while we expect such things, some of them have already been delayed, so it is not something we take for granted.

Analyst who raised Boeing’s target price to $275/share from previous $260 said that there was a tendency for big jumps to BA given current catalysts but the company has a lot of work ahead.

“Boeing’s position at the center of global air travel offers confidence that it will recover financially over time and we believe risk-reward now skews favorably,” Seifman concluded.