Industrials

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

By Jon Sindreu Boeing’s 737 MAX model just doesn’t seem able to outfly bad publicity. Even if the latest problem is just with one specific plane, its manufacturers will pay the price of greater scrutiny. Early Monday, futures markets pointed to an 8% fall in Boeing’s share price as investors tried to assess the potential damage inflicted by a door plug that blew out of a jet flown by Alaska Airlines on Friday evening. The Federal Aviation Administration grounded planes Saturday and ordered airlines to conduct inspections. The MAX has become one of the most infamous jet models in the history of commercial aviation. Most of the planes were grounded for nearly two years after 2019 following two deadly crashes. Since the ban on flying them was lifted, a raft of manufacturing glitches have delayed Boeing’s plans to increase production. Just this past December, the company warned about potential loose

Alaska Air announced Friday it has grounded its fleet of 65 Boeing 737 MAX-9 jets after a plane lost a section of its fuselage midair. The Friday night incident should generate a market response on Monday when Boeing stock opens for trading, considering investors’ long, complicated history with the MAX. Flight 1282 took off from Portland, Ore., at about 8 p.m. on Jan. 5, lost a window, and was able to return safely to the Portland airport, the airline said. “My heart goes out to those who were on this flight,” said Alaska CEO Ben Minicucci in a news release. “I am so sorry for what you experienced. I am so grateful for the response of our pilots and flight attendants. We have teams on the ground in Portland assisting passengers and are working to support guests who are traveling in the days ahead.” Alaska is working with Boeing and