Boeing is down nearly 7% in New York as Wells Fargo announced on Tuesday that it had downgraded its recommendation on the stock from 'Overweight' to 'Online Weighted', following the US FAA's decision to tighten its controls on the aircraft manufacturer.

With the FAA about to poke its nose into production, we believe that the risks involved in meeting manufacturing and delivery targets are increasing considerably", explains the analyst.

"Boeing has been facing quality problems for a long time", he points out. What's new is that an outside body is now starting to take an interest in them", the intermediary points out.

"The FAA audit is limited for the moment to the MAX 9, but it's not impossible that its conclusions will extend to other MAX models equipped with the same parts", he concludes.

Wells Fargo, which is lowering its price target from $280 to $255, believes that the limited upside potential revealed by its new target (+3%) no longer justifies maintaining a positive opinion on the stock.

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