Can Boeing return to pre- Max days?
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.”