Investing.com – Boeing (NYSE:BA) fell on Wednesday as efforts to restore its reputation took another knock following a downgrade from an analyst on Wall Street and news that one of its jets was involved in a fatal crash.
Cowen on Wednesday cut its rating on Boeing (NYSE:BA) Boeing to market perform from outperform on concerns that the aircraft maker's turnaround "will take time” amid efforts to recertify its 737 Max aircraft.
Boeing fell 1%, and had started the day on the back foot following reports that a Ukrainian International Airlines 737 jet, an older version Boeing's 737 Max, was involved in a fatal crash shortly after takeoff from Tehran.
An engine malfunction was blamed for the crash, the Ukrainian embassy said on its website, citing preliminary information. But later the embassy removed the statement and claimed that "the causes of the accident prior to the decision of the commission are not official."
The latest crash raised concerns about Boeing's operational fleet at a time when its 737 Max, which was involved in two fatal crashes last year, remains grounded costing the aircraft maker billions.
In the third quarter of 2019, the jet's continued grounding cost Boeing $900 million, taking the total to $9.2 billion.
And costs will likely continue to increase as federal regulators have repeatedly said there is no firm timeline to allow the Max to hit the skies again.