Wall Street pegs Boeing's 737 Max bill at more than US$25b
Boeing's bill for the 737 MAX grounding could balloon to more than US$25b, analysts estimated Wednesday, a day after the planemaker warned of further delay in returning its once best-selling jet to service. The company has already booked $9b in costs related to the grounding, including $5.6b as compensation for airline customers and $3.6b in charges to cover additional production costs. Jefferies analyst Sheila Kahyaoglu said Boeing may now need to boost its compensation package for customers by another $10b and revise its cost estimate related to the 737 MAX's production by an additional $5.4b. "Our estimates assume 737 MAX deliveries restart in Q3 2020," Kahyaoglu said, lowering the brokerage's price target on the stock to $390 from $420. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-01-23/general/wall-street-pegs-boeings-737-max-bill-at-more-than-us-25b
https://portal.staralliance.com/cms/logo.png
Wall Street pegs Boeing's 737 Max bill at more than US$25b
Boeing's bill for the 737 MAX grounding could balloon to more than US$25b, analysts estimated Wednesday, a day after the planemaker warned of further delay in returning its once best-selling jet to service. The company has already booked $9b in costs related to the grounding, including $5.6b as compensation for airline customers and $3.6b in charges to cover additional production costs. Jefferies analyst Sheila Kahyaoglu said Boeing may now need to boost its compensation package for customers by another $10b and revise its cost estimate related to the 737 MAX's production by an additional $5.4b. "Our estimates assume 737 MAX deliveries restart in Q3 2020," Kahyaoglu said, lowering the brokerage's price target on the stock to $390 from $420. <br/>
