Boeing’s stock price has taken a dramatic hit in response to the blowout in an Alaska Airlines 737 Max 9 flight over Oregon last week.
All 737 Max 9 planes have been grounded by the Federal Aviation Administration while an investigation is ongoing.
The big picture: Shares of Boeing have dropped by around 10 percent this week following the blowout.
- Spirit Aerosystems, the company that manufactured the door plug which blew out, has seen its shares fall by over 11 percent.
What they’re saying: Bank of America sent a note to investors saying that the incident does not change the bank’s previous recommendation that people buy shares in the stock.
- The negative effect on public perception of Boeing is expected, however, the bank said.
- “We do not expect this current issue to have a material impact to our 2024 financial forecast,” Bank of America said. “We do see the latest incident as eroding the fragile confidence that has been built around the 737 Max franchise. In our view, Boeing needs to tread carefully and cautiously through this potential reputational minefield.”