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Boeing (BA) stock tumbled Monday, falling more than 8% by Monday morning after the Federal Aviation Administration ordered the suspension of some Boeing 737 MAX 9 aircraft operations.
The plane in question had the panel installed and the Alaska Airlines plane took to the air on Friday. The order from the FAA affects 171 aircraft, according to the New York Times.
Friday’s incident is not Boeing’s first safety concern. Two fatal crashes in 2018 and 2019 led to the plane being grounded for 20 months as safety changes were made.
Last week’s events garnered a lot of attention online, with Boeing stock on track for its worst one-day decline in more than three years. By Bespoke Investment Group.
Spirit AeroSystems’ stock price also fell sharply on the news, dropping more than 13%.
Still, some Wall Street analysts don’t think the incident will have a long-term negative impact on the stock.
“This incident does not change our positive view of BA,” RBC Capital Markets analyst Ken Herbert said in a note to clients. “While we believe investing in BA requires a thick skin and the headline risk is substantial, initial indications are that this is an isolated incident and the theory of financial risk to MAX is Not changed.”
Boeing stock was up more than 20% last year.
“Our view has changed that Boeing’s key challenge over the next two years is to increase production and deliveries of the 737 and 787,” JPMorgan analyst Seth Seifman said in a note to clients. No,” he said. “Friday’s 737 MAX 9 accident clearly does not help in this regard, but the extent of the setback is not yet clear and a variety of outcomes are possible.”
Seifman said the key question going forward will be how regulators will deal with the incident and the timeline for when all aircraft can return to service.
Josh Schafer is a reporter for Yahoo Finance.
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