By Ankit Ajmera
By Ankit Ajmera
March 16 (Reuters) – Boeing Co’s BA.N shares plunged one other 20% on Monday, erasing all features recorded throughout ousted CEO Dennis Muilenburg’s tenure, because the mounting financial fallout of the coronavirus pandemic added to uncertainty across the 737 MAX’s return to service.
The coronavirus outbreak might hit Boeing’s money move additional, as airline clients cancel flights and defer capital expenditure because of a plunge in journey demand. Attainable supply deferrals have raised considerations of manufacturing cuts at Boeing’s bigger widebody plane, which had not been impacted by the 737 MAX grounding.
“Additional stress on the money flows for airways from flight cancellations might push plane deliveries to the correct, exacerbating near-term money move for Boeing,” Jefferies analyst Sheila Kahyaoglu mentioned on Friday.
Kahyaoglu lowered the value goal on the inventory to $300 from $350, citing the chance of a possible dividend reduce at Boeing.
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