Key Stats for Boeing Stock
- Price change for Boeing stock: 8%
- $BA Stock Price as of Aug. 3: $233
- 52-Week High: $254
- $BA Stock Price Target: $273
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What Happened?
Boeing (BA) stock jumped 8% on Monday after the Federal Aviation Administration finally certified the 737 Max 7. This is the smallest plane in Boeing’s popular Max family, and it’s been waiting for approval for almost 10 years.
Airlines like Southwest expected to fly this plane before the pandemic even started. But things got delayed. Two fatal crashes of the Max 8 in 2018 and 2019 led regulators to dig much deeper into Boeing’s safety processes.
On top of that, engineers had to redesign an anti-icing system on the engines, which pushed the timeline back even further.
The FAA said this approval came after years of careful review of the plane’s design and safety data. Beyond the anti-ice fix, regulators also required changes to the flight control software and the system that alerts pilots to problems in the cockpit.
Boeing already has about 40 Max 7 and Max 10 jets sitting in its inventory, built but not yet delivered. Now that certification is done, Boeing can start handing these planes over to airlines and collecting payment, since manufacturers get most of an aircraft’s price at delivery, not before.
That’s a meaningful boost for Boeing stock, especially since the company has been trying to rebuild cash flow after years of production problems.
Southwest holds most of the built Max 7s, but the airline still needs to install new extra-legroom seats before those planes can fly passengers. That means Southwest likely won’t put the Max 7 into service until next year, even though certification is now in hand.
Boeing’s next milestone is certification of the 737 Max 10, the largest plane in the Max family, along with the 777X, Boeing’s largest aircraft overall. Both have also faced long delays.
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What the Market Is Telling Us About Boeing Stock
The 8% jump in Boeing stock shows investors see this as a real turning point, not just a minor update.
For years, Boeing has struggled to convince regulators and the public that its planes and processes are safe. This certification suggests the FAA’s confidence in Boeing is coming back.
That trust matters beyond just the Max 7.
Earlier in July, the FAA said it would let Boeing resume issuing its own airworthiness certificates for the 737 Max and 787 Dreamliner, a privilege that was stripped away after the Max 8 crashes killed 346 people. Getting that responsibility back is a sign of real progress.
For investors watching Boeing stock, the bigger story here is cash. Boeing has been ramping up production of the 737 Max and 787 Dreamliner because deliveries are how the company gets paid.
With Max 7 certification done, Boeing can move inventory off its books and closer to customers’ hands, which should help its financial recovery continue.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
