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Home / World / The Boeing correction for 737 Max can take three to six months, Bank of America predicts

The Boeing correction for 737 Max can take three to six months, Bank of America predicts



The FAA announced Wednesday all Boeing 737 Max jets in the US with reference to links between two deadly crashes. The turnaround came after dozens of countries around the world hit the planes. The stock moved nearly 11 percent this week. As a result, it hit the highest weekly decline since 2008.

Bank of America stuck to its $ 480 buy recommendation and target, as the bank believes the investigation would have a "definitive timetable" as the black box rebound already underway. This would significantly reduce the uncertainty around Boeing and the Model 737 Max, the bank said. The two black boxes of the Boeing 737 MAX 8, which had crashed in Ethiopia on March 1

0, were brought to Paris for investigation.

"We expect Boeing to continue producing the 737 at the current rate of 52 per month, which will minimize supply chain disruptions, and Boeing may have to maintain inventories of approximately $ 5.5 billion per quarter in its balance sheet expect the working capital to improve when the plane is returned, "Epstein said.

The company would have to pay $ 500 million or $ 0.88 per share in the first quarter for rentals that Boeing would have to pay for alternative airlines.

WATCH: Airlines Should Recover Fast from 737 Max Grounding


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