Rising flight demand should propel Boeing shares higher, according to UBS. The investment bank initiated the airplane maker with a buy rating accompanied by a $275 per share price target. UBS’ forecast implies 42% upside from Tuesday’s $193.53 close. Shares of Boeing have ticked 1.6% higher in 2023, although a series of manufacturing flaws caused a nearly 20% sell-off over the past two months. Analyst Gavin Parsons thinks the stock now has accounted for near-term obstacles at its current valuation. BA YTD mountain BA YTD stock chart “The fundamental demand backdrop for aircraft is strong, and the 20% pullback in the stock over the past two months prices in a significant amount of near-term supply chain risk,” he wrote. Parsons also said Boeing will benefit as global flight demand grows by 5% each year going forward. As demand outpaces supply, the analyst forecasts 2,500 annual new aircraft deliveries by 2030. “We see a long runway for growth in new aircraft deliveries, with both production volume and margin upside to consensus,” he wrote. “We see higher production rates/margins/cash flow and easing supply chain bottlenecks driving higher estimates and multiples.” Specifically, Parsons noted that Boeing’s pricing and product line supported free cash flow numbers above consensus, with the analyst predicting $11 billion in 2025. — CNBC’s Michael Bloom contributed to this report.