Boeing Co. is likely to take a “substantial charge” in the fourth quarter to account for the mounting costs of its 737 Max debacle, analysts at Canaccord Genuity said in a note Friday. The analysts, led by Ken Herbert, lowered their price target on the stock to $350 from $370 and also lowered their sales and profit estimates. The Max production ramp could be slower once the plane returns to the skies, they added. The 737 Max has been grounded worldwide since March following two deadly crashes connected to a faulty anti-stall system, and its return-to-service date has stretched for months. “We are surprised the stock has held up as well as it has considering the company is perhaps facing the most severe crisis in its 100- year history, but we continue to see the financial risk as not fully reflected in the stock,” the Canaccord analysts said. Shares of Boeing have dropped 8% in the past 12 months, contrasting with advances of 26% and 20% for the S&P 500 index and the Dow Jones Industrial Average .Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
- Capitol Report: Ocasio-Cortez, Pelosi and others tear into Trump over report on his taxes - September 27, 2020
- The Wall Street Journal: Japanese chip maker Kioxia calls off massive IPO - September 27, 2020
- Judge blocks Trump administration’s ban against TikTok from going into effect - September 27, 2020