Boeing shares slide on reports of 737 Max problem overreaction

Boeing -2.9% in Monday’s trading after a pair of media reports over the weekend appeared to question the safety of 737 MAX jets.

In its report, Australia’s ABC national broadcaster cited “at least six midair emergencies” and other problems experienced by MAX jets since the planes were re-certified to fly, but Al Root at Barron’s says the problems were pulled from publicly available databases maintained by the U.S. government.

Boeing said the MAX has flown more than 1.5M flight hours in more than 580K revenue flights since November 2020, and told Barron’s “the overwhelming majority of these flights have been conducted without any incident. In the small percentage of cases in which operators have logged operational concerns, they have been very carefully examined,” and none of the issues studied were specific to one type of plane.

The other weekend report, from The New York Times, said families affected by the two fatal MAX crashes are pushing for new safety precautions and a deeper review of production practices for the MAX.

Boeing (BA)  seems increasingly unlikely to meet the year-end certification deadline for the MAX 10, the longest version of the MAX jet.

Investors should try to capitalize on the market’s pessimism over Boeing, JR Research writes in a bullish analysis newly published on Seeking Alpha. Barron’s & Seeking Alpha