Bank of America analyst Ronald Epstein lowered the price target to $150.00 per share on Boeing (NYSE:BA) stock, down from the prior $180.00.
The lowered price target reflects an increased risk profile for Boeing, Epstein told clients in a note today.
“We see a significant number of 'unexpected' challenges Boeing could still face in the near term,” Epstein wrote.
Epstein’s comments come after Ryanair joined the list of unhappy customers with their CEO saying that 737 MAX delivery delays are impacting their business. Yesterday, Bloomberg reported that China Southern has canceled more than 100 737 MAX jet deliveries.
“We would expect most of the related PDPs (pre-delivery payments) to be already used or negotiated, considering for how long MAX deliveries have been delayed. Some MAX’s have been sitting for over 3 years. If they were flying they would be approaching a heavy maintenance check. However, we see short-, near-, and long-term risks related to these news,” the analyst added.
By Senad Karaahmetovic