Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Boeing at two-week high as approval for 737 MAX to fly seen by late June

Published 05/24/2019, 06:23 PM
Updated 05/24/2019, 06:23 PM
© Reuters. FILE PHOTO: Visitors talk on the Boeing stand during the EBACE at Cointrin Airport in Geneva

© Reuters. FILE PHOTO: Visitors talk on the Boeing stand during the EBACE at Cointrin Airport in Geneva

(Reuters) - Shares of Boeing (NYSE:BA) Co rose as much as 3% to more than a two-week high on Friday after Reuters reported that the Federal Aviation Administration (FAA) expects to approve 737 MAX jets to return to service as soon as late June.

Shares of the world's biggest planemaker have fallen nearly 15% since the fatal crash of an Ethiopian Airlines 737 MAX jet in March, erasing about $40 billion in market value.

The stock has also been among the worst performers on the S&P 500 index and the Dow Jones Industrial Average. The benchmark index is up about 3% during the same period, while the Dow has risen by a marginal 0.2%.

"The dialogue is shifting more towards when the aircraft can get back into service as opposed to if," Morgan Stanley (NYSE:MS) analyst Rajeev Lalwani wrote in a note.

"With shares down about 20% from their recent highs ... and the risk-reward skewing more favorably, we are comfortable with our "overweight" rating and price target of $500."

© Reuters. FILE PHOTO: Visitors talk on the Boeing stand during the EBACE at Cointrin Airport in Geneva

If the aircraft is cleared to fly by June, its operators, including Southwest Airlines (NYSE:LUV) Co, American Airlines Group Inc and United Continental Holdings Inc, would likely not have to extend costly cancellations that they have already put in place for the peak summer flying season.

Latest comments

hi
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.