U.S. Markets closed

Boeing Shares Shake Off Concerns Over 737 Max Charge

Cristin Flanagan
Boeing Shares Shake Off Concerns Over 737 Max Charge

(Bloomberg) -- Shares of Boeing Co. rose more than 2.5% in early trading in New York after a $4.9 billion charge on the grounding of the 737 Max jets met some expectations on the Street.

The charge “is a positive”, and met Morgan Stanley analyst Rajeev Lalwani’s expectations. Lalwani was also optimistic about the tentative promise of the jetliners’ return to the skies ahead of some investors estimates, as well as the 2020 production goals, he told clients in a research note.

As one of Boeing’s biggest bulls, with a buy rating and a Street-high price target of $500, Lalwani expects “a re-start of the upward narrative” for the stock.

Citi analyst Jonathan Raviv was more cautious, writing in a note to clients that “accounting assumptions shed some light, but it ain’t over.”

Raviv called the charge neutral to positive, but added that it didn’t reflect knowledge of what steps the Federal Aviation Administration may take.

Boeing shares have now recouped much of Thursday’s 2.3% decline.

(updates share movement in lede and last paragraph)

To contact the reporter on this story: Cristin Flanagan in New York at cflanagan1@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Steven Fromm

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.