Key Stats for Boeing Stock
- Price change for Boeing stock in last 6 months: 5%
- $BA Stock Price as of Sep. 25: $198
- 52-Week High: $254
- $BA Stock Price Target: $274
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What Happened?
Boeing (BA) said it flagged a software glitch last month on some 737 Max aircraft. The issue could affect certain landing procedures.
- Here’s how it works. After a missed approach, pilots sometimes change a preprogrammed flight path.
- When that happens, they must take extra steps to use automated tools on the next approach.
- Boeing said pilots are trained to land without the automated system, and its engineers are working on a permanent software fix.
- The Federal Aviation Administration (FAA) said it is assessing the problem. It will also review Boeing’s proposed fix and act quickly if it finds a safety concern.
For now, the direct impact looks limited. U.S. airlines said their Max 8 and Max 9 fleets don’t have the updated software tied to the glitch.
Southwest said none of its planes use Version U.14, including new Max 8 deliveries.
United said it isn’t taking Max deliveries with the new software.
The bigger question is the Max 7 and Max 10.
The FAA certified the Max 7 in early August with the newest software installed.
It isn’t clear yet whether it can fly with an older version. The Max 10 is the fourth and final model in the family still waiting on approval.
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What the Market Is Telling Us About Boeing Stock
Timing matters for Boeing stock.
On its July earnings call, Boeing said the Max 7 and Max 10 were set to start deliveries in 2027. Any certification delay could push those plans back.
Investors also remember the past. Two Max 8 crashes in 2018 and 2019 killed 346 people, and flawed flight control software was linked to both.
That history makes any software issue sensitive for Boeing stock.
Still, the business has been improving. In Q2, revenue grew 8% to $24.6 billion. Boeing delivered 171 commercial airplanes, its highest quarterly total since 2018.
The company also generated $631 million in free cash flow.
Boeing is ramping 737 production to 47 planes a month and expects to deliver 500 737s this year.
Its record backlog stands at $715 billion, including over 6,200 airplanes.
The key for Boeing stock now is how fast a fix arrives.
If the FAA signs off quickly, this may be a small bump. If it delays the MAX 10, Boeing investors could face a longer wait for new deliveries.
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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!
