Boeing — BA-NYSE Neutral — Price $214.13 on Jan. 25 by BofA Global Research In the wake of the Alaska Airlines Flight 1282 incident, where a 737 MAX-9 door plug was ejected from the fuselage in midflight, Boeing has again found itself in the spotlight of materially increased regulatory scrutiny. The subsequent grounding and Federal Aviation Administration mandated production rate freeze at current levels will likely prevent Boeing from reaching its 2025-26 production, delivery, and free-cash-flow goals outlined during its 2022 investor day. We expect the FAA ruling to delay Boeing’s 737 ramp by roughly a year.
We move to the sidelines with our rating on the shares, lowering it to Neutral from Buy and cutting our price objective to $225 from $255.