Famed investor Jim Cramer recommended all members of his “Investing Club” to buy Boeing Co (NYSE: BA) shares following reports the FAA is easing delivery restrictions on its aircraft.
BA stock is pushing higher this morning as the FAA news could unlock significant cash flow and production momentum for the aerospace giant.
Boeing stock has pulled back rather significantly in September – but remains up some 70% versus its year-to-date low in the first week of April.
Why FAA news is positive for Boeing stock
BA shares are extending gains today mostly because the FAA decision to relax delivery restrictions – particularly the 737 MAX series – is a major win for the company’s turnaround plans.
Boeing has been operating under a production cap of 38 aircraft per month due to safety and quality concerns. Now that those restrictions are reportedly being removed – it can reaccelerate deliveries, reduce inventory, and unlock tied-up capital.
According to experts, this shift could improve BA’s cash flow and support its goal of delivering as many as 550 aircraft by the end of this year.
Moreover, the FAA news signals regulatory confidence in the firm’s manufacturing improvements, which could restore investor sentiment and demand across its commercial portfolio – potentially driving Boeing shares higher from here.
Jim Cramer’s bullish stance on BA shares
According to Jim Cramer, Boeing stock is now a Charitable Trust holding due to its resilience and strategic positioning.
“If you bought BA shares on weakness during the strike last fall, you’d now have a 36% gain,” he noted – highlighting the company’s history of bouncing back from labour disputes and production setbacks.
In a recent segment of Mad Money, the market expert also emphasized on Boeing’s dominance in union negotiations. “There guys have been running circles around the unions for decades.”
More importantly, the NYSE-listed giant is gradually ramping up output for its key aircraft models, including the 737 and 787 – while maintaining quality controls.
Cramer praised the company’s financial recovery, saying its balance sheet is “much, much better” following a major recapitalization in 2024.
With production stabilizing and demand returning, Boeing shares offer long-term upside for patient investors.
Should you invest in Boeing today?
Between regulatory relief, production momentum, and improving financials, BA stock is regaining its footing in the aerospace sector.
While risks remain – especially around certification delays for the MAX 7 and 777X – the easing FAA stance and Cramer’s endorsement signals of renewed confidence.
Wall Street also currently rates Boeing shares at “overweight” with the mean target of about $260 indicating potential upside of another 13% from here.
While Boeing does not currently pay a dividend, for investors seeking exposure to industrials and long-cycle growth – its stock still looks rather ready for take-off.
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