The US Federal Aviation Administration (FAA) said it still had several issues to resolve before a certification test flight on the Boeing 737 MAX could be conducted. The regulator, however, abstained from specifying when the jet’s flight ban would be lifted.
Boeing shares closed lower for the fourth time in the past ten trading sessions in New York on Tuesday. The stock inched down 0.07% ($0.25) to $344.42, after touching an intraday high at $348.02, or a price level not seen since December 13th 2019 ($349.31).
Shares of Boeing Company have risen 5.73% so far in 2020 compared with a 3.93% gain for the benchmark index, S&P 500 (SPX).
In 2019, Boeing’s stock went up 1.01%, thus, it underperformed the S&P 500, which registered a 28.88% gain.
“We are following a very diligent process and it is important that we stay focused on the process and not on the timeline,” FAA Administrator Steve Dickson said at the Singapore Airshow, cited by Reuters.
“Having said that we are approaching a milestone: the certification flight is the next major milestone and once that is completed I think we will have a good bit more clarity on where the process goes forward from there,” Dickson added.
The FAA’s certification flight “is not scheduled yet because we still have a few issues to resolve, but we continue to narrow the issues. We are waiting for proposals from Boeing on a few items,” Dickson said.
Analyst stock price forecast and recommendation
According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $350.00, with a high estimate of $440.00 and a low estimate of $260.00. The median estimate represents a 1.62% upside compared to the closing price of $344.42 on February 11th.
The same media also reported that at least 15 out of 24 surveyed investment analysts had rated Boeing Company’s stock as “Hold”, while 6 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.