Boeing shares fall the most in 19 weeks on Tuesday, Edward Jones downgrades stock to “Hold” as 737 MAX 8 accidents may weigh on short-term profit

Earlier this week Edward Jones revised down its rating on Boeing Co (BA) from “Buy” to “Hold”, as it noted that the second fatal crash of the companys 737 MAX 8 jet in the past five months might affect its short-term profit.

Ethiopian Airlines Flight 302 crashed shortly after the jet took off in a rural region southeast of Addis Ababa, which led to the deaths of all 149 passengers and 8 crew members on board. The flight was operated on the same Boeing model, 737 MAX 8, which crashed in the Java Sea last October, killing all 189 people on board.

Boeing shares closed lower for a seventh consecutive trading session in New York on Tuesday. It has also been the steepest daily loss since October 29th 2018. The stock went down 6.15% ($24.60) to $375.41, after touching an intraday high at $390.11 and an intraday low at $368.92.

Shares of Boeing Company have surged 16.41% so far in 2019 compared with an 11.36% gain for the benchmark index, S&P 500 (SPX).

In 2018, Boeing’s stock went up 9.36%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

“The accidents may result in additional expense and some delay in orders, which, from a business perspective, could pressure financial results,” Edward Jones analyst Jeff Windau wrote in a note to clients, cited by CNBC.

“Both flights had similar patterns after takeoff, raising some concerns about the automation of the flight control system. A primary downside risk to shares, in our view, is the continued concern about safety in the 737 Max 8, leading to order cancellations,” the analyst also noted.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $458.00, with a high estimate of $525.00 and a low estimate of $380.00. The median estimate represents a 22.00% upside compared to the closing price of $375.41 on March 12th.

The same media also reported that 17 out of 23 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 3 – as “Hold”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Boeing Co (BA) are presented as follows:

Central Pivot Point – $427.51
R1 – $439.53
R2 – $456.51
R3 – $468.53
R4 – $480.54

S1 – $410.53
S2 – $398.51
S3 – $381.53
S4 – $364.54