Boeing Slumps Again as Analysts See Renewed 737 Max Risk
- Stock hit with multiple downgrades in wake of ‘textgate’
- Shares have lost about 12% over the past two trading days
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Boeing Co. shares tumbled on Monday, extending the previous session’s sharp drop after the planemaker received at least three analyst downgrades on increased risk related to the company’s best-selling 737 Max jet. The moves follow reports that a pilot working on the 737 during its certification expressed concern about a feature that was subsequently implicated in two fatal crashes.
UBS wrote that the news “reinforces the perception of and heightens the potential of incomplete disclosure, which inherently puts more money/trust & time at stake.” The firm cut its view to neutral from buy, and its price target to $375 from $470. UBS also lowered its view on Spirit AeroSystems, citing the company’s “outsized exposure” to the 737 Max.