Key Stats for Boeing Stock
- Price change for Boeing stock in the last 6 Months: -9%
- $BA Stock Price as of Oct. 2: $194
- 52-Week High: $254
- $BA Stock Price Target: $273
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What Happened?
The FAA said on Friday that a new software glitch on some Boeing (BA) 737 Max planes is not a flight-safety issue. The ruling clears the way for certification of the 737 Max 10.
Boeing flagged the problem last month, which could affect certain landing procedures.
It can show up after a missed approach, when pilots change a preprogrammed flight path. Pilots then have to take extra steps to use automated tools on later approaches.
An FAA review board met on Friday. It included experts in airframes, flight controls, propulsion and flight testing.
The board said pilots keep full control of the aircraft. It also said the cockpit indications are clear.
The FAA will send airlines a special bulletin on how to spot and handle the issue. It also said it will take action if new information comes in.
U.S. airlines said they are not affected. They can go back to older software versions.
Still, the issue raised questions about Max 10 timing. Boeing and airlines had expected certification in early fall.
The Max 10 is the largest Max model and the last one awaiting approval.
The FAA approved the Max 7 in August. The CEOs of Alaska Airlines and Ryanair, both Max 10 customers, brushed off concerns about the delay earlier this week.
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What the Market Is Telling Us About Boeing Stock
This is good news for Boeing stock. A safety finding could have pushed back the Max 10 by months.
Instead, the FAA moved quickly. That keeps Boeing’s 2027 delivery plans for the Max 10 in play.
Boeing has been rebuilding trust with regulators. On the July earnings call, CEO Kelly Ortberg said the final Max 10 test flight was done.
He expected certification soon after the Max 7. Boeing stock also gets support from a record $715 billion backlog.
The numbers have been improving. Q2 revenue rose 8% to $24.6 billion. Boeing delivered 171 airplanes, its best quarter since 2018. Free cash flow was positive at $631 million.
Some risks remain. Boeing still reported a core loss of $0.76 per share. It also took a $280 million charge on the VC-25B program.
Production is ramping to 47 jets a month, and the supply chain has to keep up.
Boeing stock may now react to the Max 10 approval itself. Investors will also watch whether deliveries stay on track.
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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!
