General Electric (GE) Could Feel More Pressure From The Latest 737 Delay, BofA Reiterates Neutral

BofA Securities analyst Andrew Obin reiterated a Neutral rating and $12.00 price target on General Electric (NYSE: GE) after Boeing pushed its expectation for the 737 MAX’s return to service to mid-2020. This announcement increases the likelihood this production pause extends through 1H20.

The analyst stated "We highlighted the impact of the 737 MAX production pause as a key theme to watch in our sector 4Q19 earnings preview note. Boeing is likely to negotiate with suppliers on an individual basis, given varying contract terms. Most of our coverage firms have diversified aerospace exposures (e.g., defense, biz jets) and aftermarket revenue streams. We believe investors may look through 737 MAX issues in 1H20. However, we believe investors may underestimate the impact on secondary/tertiary suppliers and broader US industrial firms (e.g., industrial distributors)".

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

Shares of General Electric closed at $11.70 yesterday.

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