Boeing planes are safe - analyst

Credit: Reuters Studio
Published 1 week ago - Duration: 00:35s

Boeing planes are safe - analyst

Boeing planes are safe, says CFRA analyst Jim Corridore, in the aftermath of a second fatal crash of a 737 MAX 8 plane.

He's positive on the stock over the longer term.

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Boeing planes are safe - analyst

ROUGH CUT: NO REPORTER NARRATION.

Shares of Boeing slid 10 percent on Monday after China, Indonesia and Ethiopia ordered airlines to ground their Boeing 737 MAX 8 planes following the second deadly crash involving the jet in just five months.

The losses put the stock on course for its biggest daily fall in nearly two decades, halting a surge that has seen Boeing's market value triple in just over three years to a record high of $446 per share.

Spreads on Boeing's bonds were also wider in relatively light trading on Monday morning, according to capital markets publication IFR.

"We think that the Boeing planes are safe.

Boeing sent out a directive to pilots on how to handle the software settings into a dive.

There are ways to override the system.

American Airlines, Southwest Airlines, United all said they believe the plane is safe," Jim Corridore, CFRA director of industrials equity research, said.

"We think the stock is going to react in the near term to worries about the accident.

But over the longer term, we're positive on the stock because the fundamentals for Boeing remain quite strong." A Nairobi-bound Boeing 737 MAX 8 operated by Ethiopian Airlines crashed minutes after takeoff from Addis Ababa on Sunday, killing all 157 on board.

The same model, flown by Lion Air, crashed off the coast of Indonesia in October, killing all 189 on board.

Boeing said on Monday the investigation into the Ethiopian Airlines crash is in its early stages and there was no need to issue new guidance to operators of its 737 MAX 8 aircraft based on the information it has so far.

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