Associated Press
The Boeing logo appears above a trading post on the floor of the New York Stock Exchange before the opening bell, Monday, March 11, 2019. Boeing shares were predicted to fall at the open on Wall Street after the crash Sunday of a 737 Max 8 plane in Ethiopia that killed all 157 people aboard. (AP Photo/Richard Drew)
- Boeing's stock has lost more than $40 billion of market value from its 2019 peak.
- Shares have slumped about 15% since topping out on March 1.
- Wall Street analysts remain bullish on the company despite the slide, with 21 buys and only 2 sells.
- Watch Boeing trade live.
Sunday's crash of a Boeing 737 Max 8 aircraft operated by Ethiopian Airlines continued to pressure Boeing's stock Tuesday, with shares trading down more than 5%. That follows a drop of 5.3% on Monday.
And while the two days of selling have wiped out $26 billion of market value, Boeing shares have been under pressure all month. The stock topped out at $446.39 on March 1, and was under pressure even before Sunday's disaster. It's now down more than 17% from its 2019 peak - a drop of $40 billion in market value.
But the recent selling has been unable to sway Wall Street analysts, who remain largely bullish on Boeing shares. Among the analysts surveyed by Bloomberg, 21 had a "buy" rating while only 2 had "sell."
In a note published on February 27, Morgan Stanley raised its price target to $500, representing an increase of 17% at the time. "We see continued upward momentum in BA shares," wrote Morgan Stanley analyst Rajeev Lalwani. "In fact, we see a clear path to $500 given broadly higher market multiples alongside a potential order boost from China trade resolution."
Both Sunday's crash of an Ethiopian Airlines flight, which killed all 157 on board, and the fatal crash in October of a Lion Air flight in Indonesia involved Boeing's 737 Max 8 plane. More than a dozen airlines as well as the governments of China, Indonesia, Australia, and Singapore have grounded the aircraft. Boeing has more than 5,000 orders outstanding for the 737 Max 8 aircraft, which is expected to be a large driver of business in the years ahead.
Boeing's stock was up 16% this year, including Tuesday's sell-off.
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