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Cowen analyst Cai von Rumohr upgraded Boeing (BA) to Outperform from Market Perform with a price target of $290, up from $240.

The analyst says "fast-improving" air traffic is bolstering aircraft demand now that the U.S. has hit a 50% vaccination rate. While lingering Federal Aviation Administration oversight and timing of China's Max approval could limit Boeing's upside in 2021, its outlook in 2022 and beyond is "brighter," von Rumohr tells investors in a research note.

The analyst sees potential for Boeing's cash flow per share to reach $21 by 2021 and believes the stock will trade on traffic expectations.