Boeing Falls as Analyst Sounds Alarm on 'Significant' 737 Max Costs

By Yasin Ebrahim

Investing.com – Boeing’s wings were clipped Friday as one analyst warned that the airplane maker’s fourth-quarter profit will likely be hit by a “substantial charge” due to the grounding of the 737 Max jets.

Canaccord Genuity cut its price target on Boeing (NYSE:) to $350 from $370 and forecasts earnings and sales estimates to come under pressure. Boeing fell about 1%.

“We are surprised the stock has held up as well as it has considering the company is perhaps facing the most severe crisis in its 100-year history, but we continue to see the financial risk as not fully reflected in the stock,” Canaccord said.

Boeing’s efforts to restore its reputation have suffered several setbacks. The latest arrived Friday as the company said it was addressing a new software issue with the 737 Max discovered during testing last week.

Just last week, the company released internal messages that showed employees had mocked and ridiculed customers and regulators alike.

One that said the plane was “designed by clowns who in turn are supervised by monkeys”.

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