NEW YORK (TheStreet) -- Shares of Boeing Co. (BA) - Get Reportare down 0.6% to $151.90 in early morning trading Tuesday despite Jefferies' price target hike to $185 from $165, while maintaining its "buy" rating. 

"For each of the next two years, we expect the company to spend $2.5 billion to $3 billion on capital for expansion and for creating the processes that will enable it to drive out the recurring cost of assembling new jetliners," analysts said in response to Boeing embarking upon an extensive capital spending program to improve its manufacturing process.

Boeing's use of robotics on the wing panel for the 737 could reduce defects by two thirds and cut production time by 30%, the firm said, adding that the company is also beginning the process of using robotics to rivet the fuselage of the 777. 

"The gradual advances in manufacturing technology reduces the start up costs of new products and creates a culture that looks for continuous improvement in output," analysts noted. 

In addition, the ongoing efforts at lean manufacturing make the mechanic the center of the value chain and create a richer work environment for employees, Jefferies said. 

"The ongoing efforts at driving out costs gives us comfort that the company has the potential to produce operating gains that top normal advances in the learning curve," Jefferies noted. 

Separately, TheStreet Ratings team rates BOEING CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BOEING CO (BA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins." You can view the full analysis from the report here: BA Ratings Report

BA data by YCharts

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