The crash of Air India’s 787 Dreamliner has cast a shadow on Boeing’s stock, with shares plummeting nearly 3% in Monday trading. However, a recent credit rating update from Fitch has offered a glimmer of hope for the beleagued aerospace giant.
The update, which left Boeing’s creditworthiness unchanged but upgraded its rating from negative to stable, is attributed to improvements in financial flexibility and production schedules. Fitch also expects Boeing to pare down its gross debt to below $50 billion by 2026, with a focus on repaying a $7.95 billion note that matures in 2026.
Despite this positive news, the shares of Boeing remain under pressure due to ongoing issues related to the Air India crash. The company’s two black boxes and cockpit voice records have been downloaded, providing early reports on the cause of the tragedy. However, the analysis is ongoing, with updates expected within the next few weeks.
Analysts remain cautiously optimistic about Boeing’s prospects, citing a Strong Buy consensus rating from Wall Street based on 17 Buys, two Holds, and one Sell in the past three months. The average price target of $226.22 per share implies an upside potential of 8.58%. As the situation unfolds, investors will be watching closely for any further developments that may impact Boeing’s stock performance.
Source: https://www.tipranks.com/news/black-box-reports-from-air-india-crash-cause-send-boeing-stock-nyseba-into-a-tailspin