Investing.com-- TD Cowen analysts have increased their price target for Boeing Co (NYSE: BA ), citing improved confidence in the company’s production ramp-up for its 737 and 787 aircraft.

The brokerage hiked PT to $230 from $200, reiterating its "Buy" recommendation.

In a research note, TD Cowen highlighted that Boeing’s 737 production reached 34 units in April, with May tracking similarly.

The production line is operating at a pace equivalent to 38 aircraft per month, incorporating deliberate pauses to ensure quality and address bottlenecks, TD Cowen said.

Analysts anticipate that Boeing could achieve a stable production rate of 38 per month in the third quarter, with potential FAA approval to increase beyond this rate by year-end.

Regarding the 787 program, TD Cowen noted that production is approaching the planned rate of seven aircraft per month, supported by existing inventory to meet 2025 targets.

The firm also addressed international trade considerations, mentioning that China has permitted domestic airlines to accept Boeing deliveries during ongoing tariff deliberations.

Boeing has 50 aircraft scheduled for delivery to Chinese carriers between May and December, with 41 already produced or partially assembled, according to TD Cowen.

"Thus far, tariff policy -- which is dynamic -- has not imperiled delivery plans," analysts wrote.

TD Cowen raised its 2028 free cash flow estimate to $12 billion from $11.2 billion, reflecting higher expected 737 deliveries.