Moody's, S&P Cast Doubt on Boeing's 737 MAX Target: Report
Portfolio Pulse from Lekha Gupta
Moody's and S&P have expressed doubts about Boeing's ability to meet its 737 MAX production target of 38 jets per month by 2024, citing risks such as labor disruptions. Analysts predict Boeing will reach this target by the second half of 2025. Despite these concerns, no immediate credit downgrade is expected. Boeing's stock is trading nearly flat, with a slight decrease of 0.58%. Investors can gain exposure to Boeing through the Gabelli Commercial Aerospace And Defense ETF (GCAD) and iShares U.S. Aerospace & Defense ETF (ITA).
August 13, 2024 | 3:30 pm
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NEGATIVE IMPACT
Moody's and S&P have expressed doubts about Boeing's ability to meet its 737 MAX production target of 38 jets per month by 2024, citing risks such as labor disruptions. Analysts predict Boeing will reach this target by the second half of 2025. Despite these concerns, no immediate credit downgrade is expected.
The doubts cast by Moody's and S&P on Boeing's ability to meet its production targets could negatively impact investor sentiment and short-term stock performance. However, the lack of an immediate credit downgrade mitigates some of the negative impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Investors can gain exposure to Boeing through the Gabelli Commercial Aerospace And Defense ETF (GCAD). The ETF may experience short-term volatility due to the doubts cast on Boeing's production targets.
As an ETF with exposure to Boeing, GCAD may experience short-term volatility due to the negative sentiment surrounding Boeing's production targets. However, the diversified nature of the ETF may cushion the impact.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Investors can gain exposure to Boeing through the iShares U.S. Aerospace & Defense ETF (ITA). The ETF may experience short-term volatility due to the doubts cast on Boeing's production targets.
As an ETF with exposure to Boeing, ITA may experience short-term volatility due to the negative sentiment surrounding Boeing's production targets. However, the diversified nature of the ETF may cushion the impact.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 50