Yesterday Barclays downgraded Boeing Co (BA) from ”Overweight” to ”Equal Weight”, after a survey conducted by the firm showed many airline passengers would not board the 737 MAX ”for an extended period” once the aircraft is in service again. Boeings shares registered their largest single-session loss in a month.
The firm also revised down its 12-month price target on the stock from $417 to $367.
Boeing shares closed lower for a second consecutive trading session in New York on Tuesday. It has also been the steepest daily loss since April 8th. The stock went down 3.87% ($14.37) to $357.23, after touching an intraday low at $355.09, or a price level not seen since January 23rd ($353.67).
Shares of Boeing Company have surged 10.77% so far in 2019 compared with a 15.05% gain for the benchmark index, S&P 500 (SPX).
In 2018, Boeing’s stock went up 9.36%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
“We expect the recovery of 737 MAX production to take longer than expected,” Barclays analyst David Strauss wrote in a note to clients.
“In order to gauge perception of the 737 MAX, we surveyed 1,765 fliers in N America and Europe, reflecting a broad mix of age groups, income levels and frequency of airline travel,” the analyst noted.
“Nearly half wont fly MAX for year or more … if given the choice between a MAX and another aircraft type on otherwise identical flights, 52% would choose the other aircraft type,” Strauss also wrote.
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $434.50, with a high estimate of $505.00 and a low estimate of $367.00. The median estimate represents a 21.63% upside compared to the closing price of $357.23 on May 7th.
The same media also reported that 15 out of 25 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 7 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for Boeing Co (BA) are presented as follows:
Central Pivot Point – $378.35
R1 – $383.41
R2 – $390.35
R3 – $395.41
R4 – $400.46
S1 – $371.41
S2 – $366.35
S3 – $359.41
S4 – $352.46
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