Boeing (BA) Facts About The 737 - Goldman

Goldman Sachs analyst, Noah Poponak, reiterated a Neutral rating and $425.00 price target on Boeing (NYSE: BA) noting several points investors should be aware of:

• The 737 MAX is the largest product revenue and EBIT contributor at Boeing
• Goldman estimates that the MAX will account for 33% of Boeing revenue, 70% of BCA EBIT, and 45% of total Boeing EBIT over the next 5 years.
• The cause of the incident is still not fully known. Boeing expects to release a software fix in April of this year for the MCAS system
• The 787 was grounded for 4 months in 2013 for battery-related electrical issues, and while a software fix could take less time than that, a broader redesign outcome could take more time and cost more
• There are currently 385 in-service MAX aircraft (prior to groundings), the large majority of which are 737 MAX-8
• The current MAX backlog is >4,600 aircraft, 78% of Boeing’s total backlog. Asia Pacific is the largest at 28%, followed by North America at 23%

For an analyst ratings summary and ratings history on Boeing click here. For more ratings news on Boeing click here.

Shares of Boeing closed at $377.68 yesterday.

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