Boeing Stock Bounces Back Amid Optimism Over Software Glitch Fix

Boeing stock took a hit after news of a software glitch on its 737 MAX airliners sent shares plummeting nearly 7% on Monday. However, Tuesday brought a reversal of fortunes as Boeing's stock price rebounded by 2.8%. Analyst Gavin Parsons from UBS is credited with helping to turn the tide in favor of Boeing, reaffirming his 'buy' rating on the aerospace company.

According to Parsons, investors are underestimating Boeing's normalized earnings potential, which he believes remains unchanged despite concerns over the software glitch. He acknowledges that Boeing faces some risks to cash flow and potential for renewed cash burn due to delayed deliveries to customers like Southwest Airlines and United Airlines.

The analyst also points out that Boeing is expected to patch the software glitch by 'early 2028' and resume deliveries, ultimately recouping lost cash. This news comes on the heels of NASA announcing plans to return Boeing's Starliner spacecraft to operations, which could potentially become a preferred means of transporting astronauts to the International Space Station.