Jun. 1 at 8:46 PM
UBS highlighted several industrial-sector favorites with significant upside potential, led by aerospace and airline names expected to benefit from stronger cash flow, margin expansion, and earnings growth.
Boeing is UBS's top aerospace pick with a
$285 price target, implying about 30% upside. The firm expects free cash flow to exceed consensus estimates by 31% in 2028 and 37% in 2030 as production ramps up and near-term cash challenges ease. Boeing also received an
$855 million U.S. defense contract modification for four P-8A aircraft for foreign military customers.
United Airlines is UBS's top airline pick with a
$148 price target, representing roughly 50% upside. UBS forecasts 2027 EPS of
$16.48, about 15% above Wall Street expectations, driven by product mix improvements and lower fuel-cost pressure. The firm expects EPS growth of more than 60% in 2027. Separately, United announced a new nonstop route between St. Croix and Newark beginning in October.
$BA $UAL