Hoping

Boeing

(BA) - Get Report

will again take flight,

Lehman Brothers

analyst Joseph Campbell upgraded the aerospace maker to buy from market perform.

Citing a cheaper valuation relative to its peers and strong fundamentals, Campbell reversed his downgrade of six months ago. He said Boeing will hit its earnings targets and is cheaper than many other defense names. Boeing is down 18.6% year-to-date, dropping a heavy 17.9% in just the past week alone.

Campbell cites Boeing's strong revenue despite worries about falling profits in the airline industry and decreasing orders for new aircraft. "Barring a deep and extended world-wide recession, Boeing commercial aircraft sales will be up in each of the next three years." His reasoning lay in the fact that Boeing does not have an overstocked inventory, a problem plaguing companies across many other sectors. In addition, a consistent turnover of older aircraft for newer, and strong numbers of already-sold orders and expectations for new orders will help Boeing continue increasing revenue.

Boeing has come under pressure in recent years from

Airbus

, the other major manufacturer of aircraft. Campbell concedes that "Boeing felt like it was losing market share due to the visible success of the Airbus A380." But he believes competitive fears will "sharply dissipate" and psychology will improve.

Campbell said his downgrade last fall was a result of the Old Economy stalwart's expensive price tag compared to its competitors. "In the interim, Boeing has dropped and other aerospace stocks have risen, and we now find the situation reversed."

Boeing was recently up 1.6% to $54.61. Its 52-week high is $70.93. Campbell reiterated a price target of $70.