New revelations are raising risks for Boeing, and some Wall Street analysts are starting to throw in the towel on plane manufacturer after keeping buy ratings on the stock throughout the 737 Max debacle.
Credit Suisse and UBS downgraded the shares to neutral from buy on Monday with both citing the news that broke on Friday that a Boeing test pilot had warned about problems with the 737 Max system implicated in two deadly crashes and said he had “unknowingly” lied to regulators. Two years before the crashes, he complained in the messages that the MCAS flight-control system was difficult to operate.
said Sunday it understood the outcry over leaked messages from the pilot and added it was still investigating what they meant.
Boeing shares fell another 1.6% in premarket trading Monday to $338.38 per share, following a 6.8% decline on Friday. Here’s what the downgrades said: