FAA Clears Boeing MAX 10 Path with Software Glitch Ruling

Boeing Co. (BA) shares edged up slightly overnight after U.S. regulators ruled that a software glitch in the 737 MAX does not pose a flight safety risk. The Federal Aviation Administration (FAA) concluded that pilots retain full control of the aircraft, despite the issue. Jefferies analyst Sheila Kahyaoglu maintained a 'Buy' rating on Boeing, setting a $265 price target, implying a 36% upside from the stock’s last closing price.

The FAA’s decision could accelerate the certification of Boeing’s MAX 10, the largest and final model in the 737 MAX series. Jefferies expects certification by the end of 2026, with deliveries potentially starting in 2027. The MAX 10, already several years behind schedule, is critical for Boeing as it aims to boost cash flow and strengthen its financial position.

Retail traders on Stocktwits expressed mixed sentiment, with some questioning whether now is the right time to invest heavily in Boeing. One user speculated about the stock reaching new highs by 2028, while another predicted a significant rise if Boeing clears its $750 billion backlog. BA stock has fallen nearly 11% year to date, despite the recent regulatory clarity.