Boeing's stock posted its biggest two-day drop in a decade and several Wall Street firms are warning that investors are still not anticipating the risk now facing the company's core airplane model.
"The 737 MAX is the largest product revenue and EBIT contributor at Boeing, causing substantial investor questions on the situation," Goldman Sachs analyst Noah Poponak said in a note to investors."We believe investors were pricing in very limited risk to the 737 ramp-up profile, which now has greater risk within the wide range of possible outcomes following these incidents."
"On the one hand, should the 737 MAX problem be contained to a software fix, this would likely be a quicker and less costly fix implementation," Poponak said."On the other hand, if it is determined to be a more comprehensive design flaw that requires more redesign it could take long and be costly."Here is what all the major Wall Street firms are saying about the Boeing 737 MAX:
"Yesterday we hosted a call with Dr. R. John Hansman, the T. Wilson Professor of Aeronautics and Astronautics at MIT and Director of the MIT International Center for Air Transportation ... Prof. Hansman also addressed how fixes can be executed depending on the nature of a problem ...
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Source: WSJ - 🏆 98. / 63 Read more »
Source: WSJ - 🏆 98. / 63 Read more »