According to Banca Generali Saxo analysts, it is not yet time to buy the stock Boeing. One month after the tragic plane crash in Addis Ababa, the cut in Boeing production 737 caused a sharp impact on the Chicago company's shares, which returned to $ 375 a share after Friday of the other week they had touched $ 400.
The haircut at 19% production, increased from 52 to 42 aircraft/month, caused a cut in the estimates by several analysts, including that of BofAML, Ronald Epstein, who lowered the target price from $480 to $420, below the average objective of $432, going from buy to neutral.
On the technical side, shares of Boeing developed an expanding formation over the past week, which was then broken by a break below the $385 support. In the absence of other news, prices are likely to hover between $371 and $385, a price range in which the shares have fluctuated more than 50% of the time in the last four weeks and also, we can appreciate a divergence on the RSI, albeit a slight one.
It is also interesting to note the performance of Boeing's main supplier, Spirit Aerosystems, which depends on the aerospace giant for about 80% of its turnover and 15% from the fortunes of Airbus. Shares of the company, which has a market value of about $9,5 billion, have tumbled about 13,5% since March 08, plunging another 6% today, outperforming shares' 11,5% decline by Boeing.
