Boeing: Jefferies calculates crash impact on sales
(CercleFinance.com) - Broker Jefferies has said it is maintaining its "buy" rating on the Boeing share, with a target price of 448 dollars, even after the crash of the Ethiopian Airlines 737 MAX (the second fatal crash involving this plane in just six months).
Jefferies points out that this program remains the most important one for Boeing, with over 5,000 orders, with it representing approximately 29% of the group's revenues.
The broker says that accidents could create uncertainty for the group in the near term (...). The worst-case scenario would be an issue with the plane's software, which would lead to the entire fleet being grounded and a temporary halt of deliveries.
In the event of a two-month break, the impact in terms of revenues would reach 5.1 billion dollars, or 5% of FY 2019 revenue, Jefferies estimates.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Jefferies points out that this program remains the most important one for Boeing, with over 5,000 orders, with it representing approximately 29% of the group's revenues.
The broker says that accidents could create uncertainty for the group in the near term (...). The worst-case scenario would be an issue with the plane's software, which would lead to the entire fleet being grounded and a temporary halt of deliveries.
In the event of a two-month break, the impact in terms of revenues would reach 5.1 billion dollars, or 5% of FY 2019 revenue, Jefferies estimates.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.