Jefferies kept a ‘Buy’ rating for Boeing and a $265 price target.
- The FAA said Boeing’s 737 MAX software glitch does not pose a safety risk because pilots retain full control.
- Jefferies maintained its Buy rating and $265 price target, expecting MAX 10 certification by year-end 2026 and deliveries in 2027.
- MAX 10 is already several years late, but Boeing hopes its certification will help boost cash flow.
Boeing Co. (BA) stock ticked higher overnight after U.S. regulators said a 737 MAX software glitch does not pose a flight safety risk. Jefferies maintained its ‘Buy’ rating, saying the FAA decision could clear the way for MAX 10 certification by year-end.
Boeing stock edged up 0.3% overnight Sunday, after a more than 2% weekly drop. On Sept.28, the stock recorded its worst day in over a year, falling 6.9%.
Jefferies Sees MAX 10 Certification By Year-End
On Oct. 2, a Federal Aviation Administration (FAA) panel said a software glitch on Boeing’s 737 MAX does not create a safety risk and concluded that, “because pilots retain full control of the aircraft, the indications to the flight crew are clear and unambiguous.”
Jefferies analyst Sheila Kahyaoglu maintained a ‘Buy’ rating on Boeing and a $265 price target following the FAA’s decision, implying a 36% upside to the stock’s last closing price. The firm said the FAA’s finding could help Boeing move the MAX 10 toward certification before the end of 2026. The aircraft could then enter airline service with its first delivery expected in 2027.
The analyst said the regulator determined that pilots still have sufficient control of the aircraft despite the software issue. While the FAA does not consider the glitch a safety problem, Jefferies expects regulators to eventually require Boeing to make software changes. The agency could set a future deadline for those modifications rather than making them a condition for immediate certification.
Boeing’s MAX 10 Remains In Focus
The regulatory decision removes a potential obstacle for Boeing as it works to advance the MAX 10 program. The glitch could have delayed approval of Boeing’s largest and final 737 MAX model, the MAX 10, which uses the affected software. The MAX 7, the smallest model in the series, also uses the software and received certification earlier this year.
Certification would mark an important step toward beginning customer deliveries and expanding the company’s commercial aircraft lineup. The MAX 10 is already several years late, and Boeing is counting on the plane to bring in cash and strengthen its finances. The aircraft has more than 1,500 orders.
What BA Retail Traders Are Saying
On Stocktwits, retail sentiment around the stock slipped to ‘bullish’ from ‘extremely bullish’ territory the previous day.
A user wondered, “Is going all in Boeing a good idea? Both commercial and defense have begun to turn around, which will only accelerate in the coming quarters. Thoughts? Likely to hit all time high in 2028?”
Another user said, “In 3 years, this company will be a $2T[trillion] company and the stock price will be >$2000. They just need to deliver planes and clear the $750B backlog.”
BA stock has declined nearly 11% year to date.
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