UAL - Boeing 737 Max 9 Groundings Trigger Stock Turbulence For Carriers As Regulators Order Safety Checks | Benzinga
Share prices of airlines that operate Boeing Co‘s (NYSE:BA) 737 Max 9 fell on Monday as air safety regulators ordered inspections of the global fleet after a section of fuselage on an Alaska Airlines (NYSE:ALK) flight blew out shortly after take off on Friday.
The incident forced the jet to make an emergency landing in Portland 20 minutes after take-off, having already reached an altitude of 16,000 feet. Nobody was seriously injured.
The repercussions for Boeing’s reputation and share price might extend further, especially since this isn’t the first incident with the Max-family of jets. Five years ago, the entire global fleet was grounded following two fatal crashes.
Indeed, at the time of publication on Monday, Boeing’s shares were down 6.7%. By contrast, shares in Boeing’s arch-rival Airbus Group were up 2.4% in Paris, while Airbus American depository receipts (OTC:EADSY) were up 2.9%.
Goldman Sachs maintained its Buy rating and $280 price target on Boeing, saying: “Any quality control issues introduce risk to the production and delivery cadence; but there is also a scenario where this is isolated and has limited impact beyond the near-term.”
Bank of America also maintained a Buy rating and ...