Key Stats for Boeing Stock
- 1-day Price Change for Boeing stock: 4%
- Current Share Price: $221
- 52-Week High: $242
- $BA Stock Price Target: $253
What Happened?
Boeing (BA) got some much-needed good news from federal regulators this month. The FAA is easing restrictions that have slowed down plane deliveries for years, allowing Boeing to once again perform final safety checks on some 737 MAX and 787 Dreamliner jets.
Since the two fatal 737 MAX crashes in 2019, Boeing hasn’t been allowed to issue its own airworthiness certificates for MAX planes.
The same restriction applied to 787s starting in 2022 due to production quality problems. As of September 29, Boeing will resume limited certification authority.
The FAA was clear that this doesn’t mean they’re stepping back entirely. Boeing and the FAA will alternate weeks issuing certificates, and regulators will maintain “direct and rigorous oversight” of production.
However, this change frees up Boeing to deliver planes more quickly and allows FAA inspectors to focus on monitoring the actual manufacturing process rather than completing paperwork.
Moreover, Boeing just announced major orders from Norwegian Air (30 additional 737-8s) and Turkish Airlines (up to 75 787 Dreamliners and potentially 150 more 737 MAXs).
CEO Kelly Ortberg also confirmed at a Morgan Stanley conference that Boeing is on track to hit 38 planes per month on the MAX and is preparing for FAA approval to increase to 42 per month by year-end.
Ortberg highlighted progress on multiple fronts: production stability is improving, key performance indicators are trending positively, and the company successfully increased 787 production from 5 to 7 planes per month using the same review process it’ll use for the MAX rate increase.
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What the Market Is Telling Us About Boeing Stock
The 4% jump in BA stock shows investors believe Boeing is finally turning a corner. After years of production delays, quality scandals, and regulatory scrutiny, the company is demonstrating tangible progress.
The FAA decision signals regulators have enough confidence in Boeing’s quality improvements to ease restrictions. That’s not something they’d do lightly, given the agency’s intense focus on safety since the MAX crashes.
The strong order activity also indicates that airlines still trust Boeing in the long term. Norwegian’s order is notable since it’s their first direct Boeing purchase since 2017. Turkish Airlines’ doubling of its Boeing fleet shows that major carriers see value in the 787 and MAX, despite recent troubles.
What’s perhaps most encouraging is how Ortberg is approaching the turnaround. He’s focused on culture change, relocating his office to the Seattle production floor, implementing unified incentives across business units, and refusing to rush production rate increases unless the metrics are stable.
However, the 777X certification remains behind schedule, defense programs continue losing money, and the company carries too much debt from years of crisis management. But for the first time in a while, the momentum for BA stock seems positive.
For Boeing stock investors, today’s news removes a bottleneck that’s been constraining the manufacturer’s ability to convert its massive backlog into revenue and cash flow.
If production continues to stabilize and deliveries accelerate, the financial recovery could happen faster than expected.
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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!
