Barclays analyst David Strauss downgraded Boeing (BA) to Equal Weight from Overweight and lowered his price target for the shares to $367 from $417.
The stock closed yesterday down $4.86 to $371.60.
The analyst expects the recovery of 737 Max production to take longer than expected and his 2019-2020 earnings and free cash flow estimates are well below consensus as a result. Further, a survey indicates a large portion of fliers are likely to avoid 737 MAX for an extended period beyond when the grounding is lifted, Strauss tells investors in a research note.
Social media and fliers' ability to know the aircraft type in advance of booking brings greater risk to 737 Max relative to prior incidents, says the analyst.
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