Beleaguered aerospace and defense giant Boeing (BA) may be emerging from its darkest days, but hedge funds are betting against a sustained rebound, signaling a mixed outlook for the once-iconic American manufacturer.
Goldman Sachs’ latest prime services report shows hedge fund short positions rising across industrial stocks, including Boeing. However, the bearish tilt may reflect broader cyclical positioning rather than company-specific pessimism.
“Hedge funds are the most short industrials since the 2020 Covid period,” noted analyst Will Meade. In addition to Boeing, Caterpillar (CAT) and the Industrial Select Sector SPDR Fund (XLI) have been subject to heavy shorting pressure.
On the other side, Vertical Research Partners upgraded Boeing shares to Buy with a $270 price target, about 18% above current levels. That would return the stock to late-2023 highs, just before a 737 MAX 9 mid-air incident renewed concerns about Boeing’s safety record.
Vertical’s bullish call cites a strengthening aerospace cycle, rising revenue per passenger mile, easing supply-chain constraints, and improving original equipment manufacturer trends.
Together, these dynamics reflect broader gains in Boeing’s underlying business, fueling a virtuous cycle that has lifted its share price.
Is the worst over?
While Boeing has remained a target in trade-war tensions, the company has quietly staged a turnaround in 2025 that is still taking shape. Shares have surged nearly 50% over the past six months, reaching their highest level in more than a year and a half.
The rebound has been fueled by rising aircraft deliveries, a strong pipeline of defense contracts, and a major commercial order from Qatar Airways.
In its fiscal second quarter, Boeing reported revenue of $22.75 billion, up 35% from a year earlier, thanks largely to increased deliveries. Its 737 production reached 38 per month during the quarter.
Boeing told shareholders it still expects to post a loss, but at a narrower pace than previously reported. The company’s order backlog remains massive, totaling $619 billion and including more than 5,900 commercial aircraft.
“Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers,” said Boeing president and CEO Kelly Ortberg.
Boeing’s recovery has not gone unnoticed in the airline industry. Ryanair chief financial officer Neil Sorahan told Bloomberg earlier this year that the planemaker has “turned the corner,” a view echoed by Falcon Group president David Banmiller.
Banmiller told CNBC that Boeing’s renewed focus on quality could restore shareholder confidence and position the company to secure larger contracts.
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