03:47 PM EDT, 08/01/2024 (MT Newswires) -- Boeing's ( BA ) cash outlook for 2024 is weaker, but several "long-term positives" counterbalance this, UBS Securities said in a note Thursday.

The plane maker expects a $3.3 billion cash burn in Q3, reflecting a portion of the $1 billion Defense charge in the quarter, before achieving a positive free cash flow of $5.2 billion in Q4, according to the note.

"[While] H2 still has some clear risks, we believe Boeing ( BA ) is on the verge of returning to meaningful positive [free cash flow] generation which we see growing through 2028 and likely beyond," UBS said.

Risks in H2 include completing rework, managing capital and liquidity and avoiding strikes. While wage inflation is minimal, a work stoppage could impact all these factors, UBS said.

"With a new CEO announced and a tangible update on MAX factory progress, we feel increasingly confident that Boeing ( BA ) is positioned for a sustained recovery in production rates," UBS said, adding that Kelly Ortberg will become chief executive of the company, starting Aug. 8.

UBS maintained a buy rating on Boeing ( BA ) with a 12-month price target of $240.

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