Did FAA’s 737 MAX Approval Just Shift Boeing’s (BA) Investment Narrative Amid Labor Strikes?

• In the past week, the US Federal Aviation Administration approved Boeing to raise its 737 MAX production rate to 42 planes per month, lifting restrictions imposed after a major 2024 safety incident.
• This regulatory move, occurring as a lengthy labor strike threatens defense production, highlights the simultaneous opportunities and risks facing Boeing’s commercial and defense operations.
• We'll explore how the FAA's production rate approval influences Boeing's investment narrative, particularly amid significant labor unrest in its defense segment.

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Boeing Investment Narrative Recap

To be a Boeing shareholder today, you need to believe the company can stabilize 737 MAX production and improve profitability despite high debt and operational setbacks. The FAA’s approval to lift 737 MAX production caps is a clear step toward restoring financial stability and scaling output, the most important near-term catalyst, yet ongoing labor strikes in the defense segment remain the primary risk and are not resolved by this decision.

Among Boeing’s latest updates, the ongoing strike by over 3,200 defense workers in St. Louis most directly impacts the immediate production outlook raised by the FAA news. Continued labor unrest threatens to delay defense deliveries and sustain financial pressures, limiting how quickly Boeing can capture the benefits from higher commercial output.

By contrast, the unresolved labor disputes at one of Boeing’s biggest defense hubs are information that every investor should be aware of...

Read the full narrative on Boeing (it's free!)

Boeing's outlook anticipates $114.4 billion in revenue and $7.1 billion in earnings by 2028. This projection is based on annual revenue growth of 14.9% and a $18.0 billion increase in earnings from the current level of -$10.9 billion.

Uncover how Boeing's forecasts yield a $252.57 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Seventeen members of the Simply Wall St Community estimate Boeing's fair value between US$206.79 and US$326.80 per share. While the FAA’s production rate increase is a clear catalyst supporting higher output, the variety of independent views highlights how future company performance can depend on multiple, often conflicting, factors.

Explore 17 other fair value estimates on Boeing - why the stock might be worth 7% less than the current price!

Build Your Own Boeing Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Boeing research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Boeing research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Boeing's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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