Boeing Bounces Back as Analysts Reaffirm Support for Troubled Stock
Boeing stock plummeted nearly 7% on Monday after The Wall Street Journal reported that Boeing had identified a software glitch in its 737 MAX airliners. The Federal Aviation Administration (FAA) subsequently announced it would postpone certification of the 737 MAX 10 pending resolution of the issue.
However, by Tuesday, shares had bounced back up 2.8%. Analyst Gavin Parsons at investment bank UBS attributed some of this move to his decision to reiterate a 'buy' rating on Boeing stock. Parsons believes investors are underestimating the company's normalized earnings potential and expects Boeing to patch the software glitch by early 2028.
Additionally, NASA announced plans to return Boeing's Starliner spacecraft to operations, with the goal of making it its preferred means of transporting astronauts to the International Space Station.