Reportedly, JP Morgan analysts have given up on their long-term “overweight” call on Dow 30 component Boeing (NYSE: BA), the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security system shares lowering their price target for the company by $160 to just $210 dollars in a note to clients recently. The bank rated Boeing “neutral” due to the additional hit to the airline from the coronavirus outbreak, stating it to be impossible to wait for the aircraft to return to air after the grounding of 737 MAX aircraft due to two fatal crashes last year.
Boeing is scheduled to halt new hiring and overtime except in certain areas to preserve cash as the company battles its worst crisis in history.
“Our desire to hang in with Boeing until the return of the 737 MAX has worked out poorly, both regarding the timeline for re-certification and now more importantly with the impact of COVID-19 on aircraft demand,” stated JPM analyst Seth M. Seifman.
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