Boeing (BA) 737 Max groundings by the Federal Aviation Administration after the Alaska Air (ALK) accident is a “worrisome” start to the new year, BofA Securities said in a note. Analysts, including Ronald J. Epstein, said that while they see the stock to be weak on the news, they do not expect the issue to have a material impact on their 2024 financial forecast. “Boeing is one of two players in a global duopoly for commercial aircraft which are in short supply, and we believe has been making steady if not slow progress addressing the some of the internal shortfalls that led to its current situation,” the analysts said. The incident closely follows Boeing’s call to airlines to check for loose bolts on 737 MAX rudder systems as well as the company’s request to the FAA for an exemption to safety standards related to engine inlets and anti-ice systems, the

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $238, cut by $37, reflects a 27x multiple on our revised 2025 EPS estimate, adjusted from our prior 30x, on higher perceived risk. We cut our 2024 EPS view by $0.81 to $4.10 and 2025’s by $0.35 to $8.80. Shares are down 6% following news of a Boeing 737 MAX-9 aircraft, flown by Alaska Airlines (ALK 38 ***), that had a plug-type door blow out in-flight on Friday. The FAA has issued an emergency order, grounding all Max-9’s for further evaluation. On the one hand, BA has 4,526 of its nearly 6,000 commercial aircraft unit orders (about 75%) comprised of 737 MAX planes. On the other hand, the 737 MAX-9 with plug-type doors only affected 171 delivered units, and we think the lion’s

By Steve Gelsi and Bill Peters ‘Due to the duopoly nature of the industry, we do not see this impacting orders for any of the 737 Max variants,’ BofA analysts say Alaska Airlines, United Airlines and Turkish Airlines have all grounded their Boeing 737 Max 9 airplanes after part of one such jet tore away during an Alaska Airlines flight on Friday. But despite the potential safety risks for travelers and further damage to Boeing’s (BA) reputation, some Wall Street analysts, for now, have downplayed the financial impact for the jet maker. In part, they pointed to the company’s status as one of two major players in aircraft production – the other being Airbus (EADSY). They also cited a tighter supply of available aircraft and limited near-term impact, at least while investigators try to figure out the cause of the incident. Those airlines and others took the action over the