There's a bright light at the end of the tunnel for

Boeing

(BA) - Get Report

.

Three weeks after upgrading Boeing shares to overweight, Lehman Brothers analyst Joseph Campbell boosted his price target to $60 from $55 Tuesday morning, telling investors the aerospace giant was due to deliver more planes in 2005 than most expect.

In Campbell's view, the commercial aerospace cycle is picking up because airlines have stopping pushing off orders and network carriers have been using older planes to meet the increased passenger traffic load. And with low-cost carriers like

JetBlue

(JBLU) - Get Report

,

Southwest Airlines

(LUV) - Get Report

and

AirTran

(AAI)

all pushing aggressive plans to expand to new markets, demand for planes will rise in the years ahead.

"We believe

Airbus

and Boeing are currently positioning themselves to have the ability to ramp production up sharply to meet much higher deliveries in 2006 -- perhaps together about 100 more aircraft each in 2006 than our 2004 forecasts," said Campbell in his research note. (Lehman Brothers does and seeks to do business with the companies covered in its research reports.)

Don't expect to hear about higher guidance anytime soon. With Boeing still reeling from an ethics scandal that could cost it a $23.5 billion contract to make refueling tankers for the Pentagon, the analyst said the company will likely be cautious with estimates. Campbell said Boeing may not provide guidance for 2006 until next year.

Campbell is not the only analyst who has turned a kind eye to the beleaguered Boeing. A month ago, Credit Suisse First Boston upgraded the company, telling investors its next-generation 7E7 Dreamliner program would be a big hit with its customers.

But while some are positive, Boeing remains a battleground stock. Eleven of the 17 analysts who cover the stock rate it at sell or hold, with four of those at sell. On Friday, Smith Barney reiterated its sell rating on the company's shares, which had recently touched a two-year high.