Boeing Announces 737 MAX Software Update; Feinseth Says To Buy Weakness In Jet Manufacturer's Stock

Boeing Co BA offered a preview of new software, cockpit alerts and training programs for 737 Max planes Wednesday, according to CNBC.

What Happened

Boeing Vice President Mike Sinnett told reporters on Wednesday it is working with customers and regulators to "restore faith in our industry and also to reaffirm our commitment to safety.

The changes made by Boeing include the following, CNBC said:

• The automated flight control system will now receive data from multiple sensors instead of just one.
• The software will not push the nose of the plane lower if the sensors are pointing to different data.
• New indicators in the flight control display.
• New training for all 737 MAX pilots on how to disable software.

Why It's Important

Global demand for commercial aviation services is likely to grow by 4 percent per year over the coming two decades, Tigress Financial Partners' Ivan Feinseth said in his daily newsletter.

Boeing remains well-positioned to take advantage of the $8.8-trillion market over the next 20 years, in addition to the potential for more military contracts, the analyst said. 

"I believe the recent weakness in the stock is a buying opportunity and that significant upside exists from current levels," Feinseth said. 

What's Next

Boeing is expected to launch the software updates and new pilot training programs to the FAA for approval by the end of the week. The agency could certify the changes within two weeks of receipt.

Related Links:

Argus Downgrades Boeing On Near-Term 737 Max Risk

Headline Edge: How News On Boeing's 737 Is Affecting Different Markets

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