It seems as if troubles for Boeing (NYSE: BA) shareholders are not over yet, as the company mulls shelving the Max 10 airplane production. Namely, Dave Calhoun, BA CEO, hinted at this possibility when he gave an interviu for the trade publication Aviation Week.
The biggest issue appears to be the Aircraft Safety and Certification Reform Act, enacted by the U.S. Congress in late 2020, which mandates all airplanes certified as of 2023 to comply with the newest crew alert regulations. Meanwhile, the company’s airplanes are under increased scrutiny due to diverse probleme Boeing had recently.
This, along with the debt that the company took on during Covid lockdowns, looks to be pushing Calhoun towards the possibility of shelving the Max 10.
“We end up having to face right into that question. If you go through the things we’ve been through, the debts that we’ve had to accumulate, our ability to respond, or willingness to see things through even a world without the -10 is not that threatening.”
Diagrama BA și analiză
Recently, the price action managed to close above the 20-day and 50-day Medii simple în mișcare (SMAs), despite the stock being down 33% year-to-date (YTD). Further, the trading range has settled between $130 and $147 on reduced trading volume, possibly indicating further sideways movement.
Pe de altă parte, analiștii evaluează acțiunile ca o cumpărare puternică, prezicând că prețul mediu în următoarele 12 luni ar putea ajunge la 213.27 USD, 53.35% mai mare decât prețul curent de tranzacționare de 139.07 USD.
Rivalitate frateasca
In short, the Max 10 seems to account for roughly 15% of Boeing’s unfulfilled orders for 737 jets; however, the company still produces and sells the Max 8 and Max 9 jets, which fly customers around the globe.
There is a possibility that customers that want to buy the Max 10 might move to Airbus (OTCMKTS: EADSY) if the airplane gets canceled.
If this happens, it will represent another victory by Airbus over its rival; yet, BA has strategic importance to the U.S., and a lack of orders by commercial clients might be replaced by government and military bodies.
Regardless, shareholders could expect to see more volatility in the stock in the short term.
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Source: https://finbold.com/boeing-to-possibly-cancel-the-max-10-whats-next-for-ba-stock/