Richmond Times-Dispatch

Can Boeing return to pre- Max days?

- David Koenig; Jenni Sohn • AP

Boeing shares have taken off this month, rising more than 50% in anticipati­on that the 737 Max could soon fly again.

The U.S. Federal Aviation Administra­tion and Europe’s aviation regulator are satisfied with fixes Boeing made after two deadly crashes, and have spelled out terms under which Boeing can resume deliveries of finished jets and airlines can put passengers back on their long-grounded planes.

No doubt Boeing stock was also helped by encouragin­g news about vaccines for COVID-19, which has devastated air travel and torpedoed demand for new airplanes.

However, both of those elements now seem fully baked into Boeing’s share price, so does the stock have room to grow?

“For a bull case to gain traction from here, the virus and air travel recovery would need to be faster and better than expected,” Credit

Suisse analyst Robert Spingarn writes.

Spingarn still sees Boeing facing difficult demand for commercial planes, a weakened competitiv­e position, and a debt- laden balance sheet that will sap shareholde­r returns for five years. He rates the stock “Neutral.”

 ??  ??

Newspapers in English

Newspapers from United States