Boeing (NYSE: BA) was downgraded to Underweight from a previous investment rating of Equal Weight by analysts at financial services provider Wells Fargo on Tuesday. They said the aerospace and defense company faces a difficult time amid efforts to develop new aircraft.

“Boeing (BA) had a generational free cash flow opportunity this decade, driven by increasing production of mature aircraft and low capital expenditure requirements,” Wells Fargo analyst Matthew Akers said in a Sept. 3 report. “But after significant delays and additional costs, we now see growing cash flow from production leading into a new aircraft capital expenditure cycle, capping free cash flow for several years.”

The bank forecasts Boeing’s (BA) free cash flow to peak in 2027 and fall below its previous target of $10 billion. Wells Fargo’s free cash flow estimates are 15 to 20 percent below Wall Street analysts’ average estimates for 2026-2027.

“Boeing (BA) has $45 billion of net debt on its balance sheet and we estimate that paying off this debt would consume all of the company’s cash by 2030,” Wells Fargo said. “However, we doubt that the company can launch a new aircraft program (more than $40 billion investment) without first cleaning up its balance sheet.”

Wells Fargo predicts that Boeing (BA) will need to issue more shares to raise $30 billion and improve its capital structure.

The bank cut its price target for Boeing (BA) to $119 per share from $185, based on 12 times the cash high, discounted to one year from today.

The new CEO of Boeing (BA), Kelly Ortberg, took office on August 8. Following the near-disaster involving a Boeing (BA) 737 Max in January, the US aviation authority FAA capped production of the best-selling aircraft until the company can demonstrate improvements in safety and product quality.

The company also faces the possibility of 32,000 workers going on strike if a new collective agreement is not signed with the International Association of Machinists. The current agreement expires on September 12.