Lower research and development costs at Boeing should boost profit margins in the coming years, according to research published by Citi on Thursday.
Analyst Jason Gursky raised his earnings-per-share estimates for 2013 through 2015, and raised his price target to $112, from $105.
Boeing shares have been rising since late January, when investor worries began to recede about the grounding of its 787 due to malfunctioning batteries. The first 787s resumed flying last month, and Boeing deliveries resumed this week.
Gursky expects the rest of Wall Street to start bumping estimates higher with the company opening its annual investor day in South Carolina next week, "as management is likely to focus on margin expansion opportunities."
The pace of orders is likely to slow, Gursky said, but Boeing's backlog is so large that the stock will do fine. Boeing has orders for 4,447 planes that it hasn't built yet.
Boeing Co. shares fell 22 cents to $96.80 in premarket trading. Shares are up nearly 30 percent this year.