Boeing (BA) shares fell again this week. The stock closed at $198.20 on Friday, September 18, down 4.83% over the previous 5 trading days and 12.98% yr to date.
The drop came after feedback from CEO Kelly Ortberg at Morgan Stanley’s Laguna Conference on September 16, where he recognized new challenges on the 737 and 787 manufacturing ramps, and pushed 777X certification testing further into 2027.
Boeing is already under strain to show that its turnaround is possible, and the CEO’s feedback only added to buyers’ warning. Yet, even with the warning, at least one main bank sees the pullback as a probability to add shares of the aircraft maker at a low cost.
Boeing shares slide after CEO’s warning on 737 and 777X delays
Ortberg instructed the viewers at the Morgan Stanley convention that the 737 manufacturing line has not yet stabilized at the 47-jets-per-month charge Boeing had focused. The delay is due to in-house manufacturing of wings, though Boeing said the broader provide chain is holding up.
On a more constructive notice, Ortberg said the 737 MAX 10 variant should get its certification “very soon,” and instructed analysts, “When I left Seattle yesterday, I think we had three deliverables to complete.”
Ortberg also confirmed that certification testing on the 777X, Boeing’s delayed widebody, would prolong into 2027. The aircraft is already about seven years previous its unique schedule, and its ETOPS certification has been held up by an engine seal subject on the GE Aerospace-built GE9X turbine.
GE Aerospace (GE) responded that certification can transfer ahead with the current seals, and said the upgraded components started transport in August. Boeing designs and builds business jets, protection plane and space systems, so any subject in the manufacturing ramp impacts income and the supply schedules airways have already dedicated to.
Boeing (BA) shares slid this week after CEO Kelly Ortberg flagged manufacturing and certification hurdles at Morgan Stanley’s Laguna Conference on September 16.John M. Chase / Getty Images
Ronald Epstein calls the market response overdone
Bank of America aerospace analyst Ronald Epstein used the selloff to reiterate his Buy score and $270 price goal. Epstein has coated aerospace and protection at Bank of America for over a decade and holds a five-star analyst score from TipRanks, which makes his call credible with institutional buyers.
In a Bank of America Global Research report shared with me, Epstein wrote that Ortberg’s feedback triggered about a 7% intraday drop in BA shares and said the market response was “a bit dramatic.” He argued that setbacks were expected from the begin.
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“We wouldn’t expect Boeing’s turnaround effort to follow a linear path; there will be setbacks on the way up,” Epstein wrote. “Boeing operates in a complex, highly regulated industry and its execution was seriously compromised, so it will naturally take time, but the turnaround is broadly progressing in the right direction,” he said. Epstein’s goal implies about a 36% increase from Sept. 18’s close.
Why the SPEEA labor deal issues more than the manufacturing noise
Epstein highlighted something else that many merchants may have missed. In his view, the more significant near-term risk lies with the Society of Professional Engineering Employees in Aerospace (SPEEA), whose present contract expires on October 6.
SPEEA represents around 17,000 engineers who deal with certification security evaluation and paperwork, and their approval is needed for Boeing to keep transferring planes through the pipeline. Boeing and SPEEA reached a tentative four-year settlement earlier in September. But members still have to vote to approve it, and a rejection could lead to a strike.
“We believe the real near-term risk for Boeing lies in a potential SPEEA strike, with the current contract expiring on October 6,” Epstein wrote in the Bank of America report. Even so, Epstein said he is snug with BofA’s 2026 free money stream forecast of $2.4 billion for Boeing. The 737 MAX 10 makes up about 30% of Boeing’s 737 backlog, which is why its certification is very important for future money stream.
What Boeing buyers should weigh next
Ortberg’s feedback added to the current hypothesis surrounding Boeing, though the underlying direction of the restoration stays the same. Boeing has been delivering more jets in 2026 than at any level since 2018. That tempo has not modified.
Boeing’s order guide exceeded $695 billion earlier this yr, boosted by new 737 MAX commitments from carriers including Turkish Airlines and Flydubai. That backlog only interprets to money stream if Boeing can construct and certify the planes on schedule.
That is where the risk lies. If SPEEA members reject the tentative deal, or if 777X testing is delayed again, money stream forecasts will need to transfer decrease. A 737 MAX 10 certification and an accredited SPEEA settlement could change sentiment positively.
Boeing’s document over the previous 5 years exhibits how simply timelines can change, so buyers who buy into the turnaround should keep that in thoughts. New buyers contemplating Epstein’s call can attempt investing steadily so you can have a security cushion in case of any timeline delays or certification issues.
