Why Boeing Stock Isn't Up More After Good FAA 737 MAX News -- Barrons.com
By Al Root Boeing got some good news about the 737 MAX. However, shares of the commercial airplane maker show some lingering investor nervousness. Friday, the Federal Aviation Administration said a 737 MAX software glitch didn't pose a flight safety concern. The glitch, first reported by The Wall Street Journal, can impact landing in limited situations. The problem, however, doesn't take control away from pilots. That was a relief. Investors are highly attuned to 737 MAX problems after two deadly crashes and production quality issues, which have reduced production and increased regulatory oversight. The current glitch threatened to delay certification of the 737 MAX 10, the longest MAX variant. Additional certification delays mean fewer deliveries and more frustrated customers. Boeing has more than 1,500 orders for MAX-10 jets. About 2,400 MAX jets have been delivered since the plane's first delivery in 2017, Jefferies analyst Sheila Kahyaoglu wrote Sunday that the FAA decision means the MAX-10 can be certified by year-end. That is another relief for investors. Wall Street never appeared troubled by the new software issue. Since its discovery, the average analyst price target dropped by about 70 cents, or 0.3%. Investors look a little more cautious. Boeing stock is still down about $5, or 2.5%, since the discovery of the glitch, despite FAA reassurance. And the stock is still lower despite Boeing winning a new multibillion fighter jet contract from the Navy this past week. That shows investor confidence was shaken. It might take the 737 MAX 10 certification to get it back. Boeing's stock was down 0.2% in midday trading at $193.17, while the S&P 500 was up 0.4% and the Dow Jones Industrial Average was down about 0.1%. Shares rose 0.7% on Friday, adding about $1 after the FAA's comment on the current MAX software issue. That isn't much of a move for relatively good news. Investors don't feel relieved about Boeing's MAX outlook just yet. Write to Al Root at allen.root@barrons.com. This content was created by Barron'
Dow Jones•2026-10-05 15:51
