UPDATE: Boeing (BA) Risks Increase as the China Resurgence Fades, PT Lowered to $150 at BofA Securities

May 17, 2022 5:21 AM EDT
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(Updated - May 17, 2022 8:59 AM EDT)

BofA Securities analyst Ronald Epstein lowered the price target on Boeing (NYSE: BA) to $150.00 (from $180.00) while maintaining a Neutral rating after Bloomberg news reported that China Southern is taking more than 100 737 MAX jets off its delivery plan. Additionally, last week, the Chinese airline’s Chairman Ma Xu Lun reportedly said at an investor briefing that the 737 MAX would be excluded from fleet deliveries through 2024 due to “uncertainty surrounding the delivery.”

The analyst stated "we see a significant number of “unexpected” challenges Boeing could still face in the near term. This morning, Ryanair joined the list of Boeing’s displeased customers. The airline’s CEO, Michael O'Leary, highlighted how the 737 MAX delivery delays and inability to close deals on new aircraft have affected the airline’s operations, emphasized fundamental underlying problems on the civilian aircraft side, and questioned Boeing’s headquarters move to Virginia.
Simply stated, if the 737-Max 10 and Max 7 aren’t certified this year and the 787 does not start deliveries again, one airplane line, the 737-Max 8, is not enough to feed Boeing."

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