Bank of America upgraded Boeing (BA, Financials) to Buy from Neutral on Monday and raised its price target to $260 from $185; the new target marks a Wall Street high. Analyst Ronald Epstein cited Boeing's rising importance in international trade discussions under the Trump administration and noted the company's aircraft have become a favored negotiating tool in recent U.S. trade deals with the United Kingdom, Qatar, the United Arab Emirates and China.

• Warning! GuruFocus has detected 6 Warning Signs with BA.

The upgrade follows Boeing's operational improvements; the company has stabilized production and taken steps to reduce free cash flow burn. CEO Kelly Ortberg said 737 MAX output is approaching 38 jets per month, the current Federal Aviation Administration limit; Boeing aims to raise that figure to 47 by year-end. Meanwhile, 787 Dreamliner production is increasing from five to seven aircraft monthly, following FAA approval.

The potential resumption of jet deliveries to Chinaafter a bilateral trade trucecould further bolster near-term momentum. Separately, Air India is in talks with Boeing and Airbus for an order of 200 additional single-aisle jets as part of its multibillion-dollar expansion; this would come on top of the airline's 2023 order for 470 aircraft and a follow-up order for 100 wide-body jets.

Vietnam Airlines is also expected to finalize a deal for 50 Boeing 737 MAX planes soon, based on a provisional agreement signed in 2023. Reuters reported the airline could require as many as 100 new narrow-body jets by 2035; a memorandum of understanding signed in April with Vietcombank would provide financing support for those purchases.

Boeing shares rose 2% Monday to close at $211.47. The stock is now up 64% from its April 7 low of $128.88. Shares are trading just above a $209.66 buy point from a nine-day consolidation pattern; the rally follows an earlier breakout from a double-bottom base with a $184.40 entry. Year to date, Boeing stock is up more than 19%.

This article first appeared on GuruFocus.