Boeing Stock Bounces Back as Analyst Says Investors Overreacted
Boeing stock had a rough start to the week after The Wall Street Journal reported a new software glitch on its 737 MAX airliners. Shares plummeted nearly 7% on Monday.
The Federal Aviation Administration (FAA) has postponed certification of the 737 MAX 10 pending resolution of the issue.
However, investment bank UBS analyst Gavin Parsons believes investors are overreacting to the news. He reiterated his 'buy' rating on Boeing stock and thinks investors are underestimating its normalized earnings potential.
Parsons acknowledges that Boeing faces short-term risks to cash flow due to delayed deliveries for customers like Southwest Airlines and United Airlines, but he's confident that the company will patch the software glitch by early 2028 and resume deliveries.