The Boeing Company

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Bullish +55

BA Stock Ticks Higher Overnight: Analyst Sees MAX 10 Certification By ...

Aircraft certification Regulatory approval AI-generated analysis

πŸ“ˆ Boeing stock ticked higher overnight after the FAA ruled that a 737 MAX software glitch does not pose a flight safety risk.

πŸ›« The FAA panel concluded that pilots retain full control of the aircraft and that crew indications are clear and unambiguous.

πŸ’° Jefferies maintained a 'Buy' rating on Boeing with a $265 price target, implying 36% upside to the last closing price.

πŸ“… Analysts expect the FAA decision could clear the way for MAX 10 certification by year-end 2026.

✈️ The MAX 10 is projected to enter airline service with first deliveries expected in 2027.

πŸ’΅ Boeing is counting on the MAX 10 to boost cash flow and strengthen its finances given the model's delay.

πŸ“‹ The 737 MAX 10 has more than 1,500 orders pending certification.

⚠️ Jefferies expects regulators to eventually require Boeing to make software changes despite the current FAA stance.

πŸ“‰ BA stock had previously fallen nearly 11% year to date and recorded its worst day in over a year on Sept. 28.

Bullish Signals
  • Boeing shares rose overnight after the FAA determined a software glitch does not pose a flight safety risk.
  • Jefferies maintained a 'Buy' rating with a $265 price target following the FAA's positive regulatory decision.
  • The FAA ruling removes a potential obstacle for advancing the MAX 10 program toward certification.
  • Certification of the MAX 10 could help Boeing boost cash flow and strengthen its financial position.
  • The MAX 10 holds more than 1,500 orders, indicating strong demand despite being several years late.
Risk Factors
  • The 737 MAX 10 is already several years behind schedule, delaying the expansion of Boeing's commercial aircraft lineup.
  • Jefferies expects regulators to eventually require software changes for the MAX 10, which could delay certification or impose future deadlines.
  • Boeing stock has declined nearly 11% year to date and recently recorded its worst day in over a year.
Full Analysis
Boeing Co. (BA) shares rose overnight following a Federal Aviation Administration (FAA) determination that a software glitch on the 737 MAX does not constitute a flight safety risk. The regulator concluded that pilots retain full control of the aircraft and that indications to the flight crew remain clear, effectively removing a potential obstacle for the certification of the 737 MAX 10 model. Jefferies analyst Sheila Kahyaoglu maintained a 'Buy' rating on Boeing with a $265 price target, citing the FAA's decision as a catalyst that could enable MAX 10 certification by year-end 2026. The firm anticipates that the aircraft could enter airline service in 2027, which would help Boeing advance its commercial aircraft lineup and generate much-needed cash flow to strengthen its finances. The 737 MAX 10 is already several years behind schedule but holds over 1,500 orders. While the FAA does not view the current glitch as an immediate safety problem requiring immediate modification for certification, Jefferies expects regulators to eventually mandate software changes, potentially setting a future deadline rather than making them a condition for immediate approval.