'We can no longer defend the shares': Boeing gets slapped with a trio of Wall Street downgrades as 737 Max scandal worsens
- In light of recent reports that Boeing employees may have misled regulators regarding the doomed 737 Max aircraft, a trio of Wall Street banks issued downgrades on the stock Monday.
- Shares traded as much as 4% lower as the heightened scrutiny became the lastest development in a year-long scandal that began with two fatal crashes resulting in 346 deaths.
- Here's why three Wall Street firms slashed their price targets for Boeing's shares on Monday.
- Watch Boeing trade live.
Boeing's stock received a trio of downgrades from Wall Street firms Monday amid recent reports that the aircraft manufacturer may have misled regulators regarding the doomed 737 Max.The company's shares plunged 4% on Friday after Reuters reported that the Federal Aviation Administration was reviewing internal messages between two employees that suggest they may have lied about a key safety feature on the aircraft model. Advertisement
Shares extended those losses another 4% on Monday amid the flurry of Wall Street downgrades and intensifying scrutiny of the ongoing 737 Max crisis.
The banks warned that amid the recent developments it could take longer than expected for the model to return to service, resulting in rising costs and a damaging hit to the company's public image.Read more: 'Bigger than the housing bubble': One market expert breaks down why the next US economic meltdown will be even worse than the last
Here's what three Wall Street firms that downgraded Boeing shares on Monday are saying about the aircraft manufacturer's worsening 737 Max scandal:
Credit Suisse: "We can no longer defend the shares."
UBS: "We see increasing risk that the FAA won't follow through with a certification flight in November."Advertisement
Bank of America: "We see increased uncertainty related to the MAX return to service timeline."
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