Argus is bullish long-term on Boeing but believes management needs to be more pro-active in its response to 737 Max groundings.
“We have been long-time bulls on the BA shares, raising our rating to BUY in May 2012, when the share price was $69… Since our upgrade, the shares have appreciated almost 540%, not including dividends… However, the shares have fallen almost 17% from their highs in the wake of the second fatal crash of a Boeing airplane…. We think the long-term outlook for Boeing is bright and are maintaining our five-year BUY rating… If the cause of the crashes turns out to be a mechanical or an engineering issue, Boeing can correct the problem and the industry, which is heavily dependent on the plane, the 737 Max jet, can move on….”
Read more about this here,
Be the first to comment