11:15 AM EST, 01/29/2025 (MT Newswires) -- Boeing's ( BA ) operations have been showing "early signs of improvement" since a strike by the International Association of Machinists and Aerospace Workers ended in November last year, but the work stoppage weighed on Q4 results, BofA Securities said in a note Wednesday.

The company's wider-than-expected Q4 loss reflected the impact of the IAM work stoppage and agreement, defense charges, and costs associated with workforce reductions, the firm said.

Boeing's ( BA ) 737 production, however, is expected to gradually increase, according to the note. Production resumed in Q4 and deliveries are already on the rise, BofA said.

The firm said its valuation for the stock "fairly reflects upside risks to FCF, strong demand for commercial jets, defense opportunities, as well as improving operations," although it might take longer than expected to recover "engineering excellence and robust execution."

BofA raised its price target for the stock to $185 from $170, while reiterating its neutral rating.

Shares of Boeing ( BA ) were down more than 2% in recent trading.

Price: 173.20, Change: -4.58, Percent Change: -2.58