Key Stats for Boeing Stock
- Price change for Boeing stock in last 6 months: -15%
- $BA Stock Price as of Oct. 16: $190
- 52-Week High: $254
- $BA Stock Price Target: $267
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What Happened?
The FAA is set to approve the Boeing (BA) 737 MAX 10 as soon as next week, Reuters reports. Three people familiar with the matter said the agency finished a key safety review on Friday.
The review was done by the Type Certification Board, and it is the last step before the FAA decides on certification.
This has been a long wait. Boeing once planned to start MAX 10 deliveries in 2020, and the FAA only approved the smaller MAX 7 in August, after more than eight years of review.
An anti-ice engine issue from 2023 slowed both planes down.
There was one more scare. In late September, Boeing disclosed a glitch in the MAX navigation software update.
On October 2, the FAA said it was not a safety concern and did not need to be fixed before certification. It said only that “safety dictates the certification timeline.”
Boeing referred questions to the agency.
The delays have also helped Airbus. Its A321neo has taken a bigger share of the large single-aisle market.
Airlines have ordered nearly 1,500 MAX 10s, which is about 30% of Boeing’s 737 backlog. Customers include United, Alaska, Ryanair, Delta, and American.
Boeing has already built a handful of the planes, and they are waiting to be delivered.
Boeing has called the MAX 10 a major cash-flow driver for its recovery. On the July earnings call, CEO Kelly Ortberg said the final MAX 10 test flight was done.
He expected deliveries of the -7 and -10 to start in 2027.
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What the Market Is Telling Us About Boeing Stock
For Boeing stock, this is good news, but it is not a finish line.
The Q2 numbers show a company that is still recovering.
- Revenue grew 8% to $24.6 billion, but the core loss was $0.76 per share.
- Part of that came from a $280 million charge on the VC-25B program.
- Boeing made $631 million in free cash flow and expects $1 billion to $3 billion for the year.
- CFO Jay Malave said the $10 billion cash flow goal is “very attainable” and tied to more deliveries.
The 777-9 is still in certification, and Boeing expects deliveries in 2027.
Labor talks with the SPEEA union are also ongoing, with the contract set to expire this month. Ortberg said he is hopeful for a deal.
Still, a MAX 10 approval would clear a big hurdle. Boeing stock now depends on turning a huge backlog into steady deliveries.
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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!
