Boeing stock price started rallying on hopes of demand recovery and resumption of 737 MAX production at the Renton, Wash., factory. The company says that they began building 737 MAX program at a low rate, with plans of ramping up production later this year.

Boeing stock rose close to 13% in Wednesday trading after Third Point Offshore Fund listed its stock as the best performer for the month of May. The shares also received support from reports that SMBC Aviation Capital, which is the key 737 MAX customer, announced to delay the order for 113 aircraft instead of canceling the entire order.

German TUI Group, Europe’s biggest travel and holiday company, agreed over compensation for delayed MAX deliveries and keeps the orders intact. Boeing stock price rebounded 70% from March lows, but the stock is still down 50% year to date.

On the other hand, the rating firms have also started showing confidence in Boeing’s fundamentals, with RBC claims that Boeing’s beaten-down stock offers potential rewards that overshadow the risks.

 “Despite uncertainties over the 737 MAX and the health of the airline industry, we expect a multiyear period of high double-digit growth of passenger demand that should propel the stock higher,” RBC analysts said.

Goldman analyst Noah Poponak upgraded Boeing stock price target to $209 with a Buy rating, saying that demand will improve in the long-term, and Boeing would again generate positive free cash flows.

Boeing is among the hardest-hit companies of coronavirus outspread. It has recorded zero orders in March and April along with a massive amount of order cancellation from customers. Its backlog of 4,834 planes in April dropped to the lowest level since 2013 to 4,834 planes. The company’s balance sheet, however, improved after it generated $25B from the bond market.