Key Stats for Boeing Stock
- Price change for Boeing stock in the last 6 months: -13%
- $BA Stock Price as of Oct. 20: $190
- 52-Week High: $254
- $BA Stock Price Target: $267
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What Happened?
Boeing (BA) got a long-awaited win on Tuesday after the FAA granted final approval to the 737 MAX 10. The approval clears the way for Boeing to start delivering the largest version of its best-selling jet.
The MAX 10 has been stuck in certification since the early 2020s. Airlines have ordered more than 1,550 of them, and the plane makes up 31% of Boeing’s outstanding 737 backlog.
It can carry up to 230 passengers, versus up to 195 on the MAX 9.
Boeing has called the MAX 10 a major driver of cash flow in its recovery. It also matters in the fight with Airbus, given the delays helped Airbus’ A321neo win a bigger share of the large single-aisle market.
The next steps are clear.
Certification with Transport Canada and the European regulator should take “probably a couple of months”, and the first delivery goes to WestJet early next year.
Boeing’s recent results show the business is improving.
In Q2, revenue rose 8% to $24.6 billion as the company delivered 171 airplanes, its best quarter since 2018.
Free cash flow was positive at $631 million and Boeing still expects $1 billion to $3 billion in free cash flow this year.
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What the Market Is Telling Us About Boeing Stock
Boeing stock barely moved, which suggests the approval was widely expected.
The MAX 10 has been in the works for years, so much of the good news may already be priced in.
Still, it removes a big hurdle, as Boeing has faced tougher reviews since the two fatal MAX 8 crashes in 2018 and 2019.
The FAA approved the smaller MAX 7 in August.
Boeing disclosed a navigation software glitch in late September, but the FAA said it was not a safety concern.
Union talks with its engineers were also ongoing ahead of an October contract expiration. And the 777-9 is still six years behind schedule, with deliveries expected in 2027.
For now, Boeing stock is a story about execution.
Investors will watch how fast Boeing ramps 737 output and turns its backlog into cash.
Boeing stock could see more attention once the first MAX 10 deliveries begin.
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So what is Boeing stock actually worth?
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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!
