Boeing’s fix for 737 Max may take three to six months, Bank of America predicts...
March 14, 2019 - by Yun Li for CNBC
- Boeing earlier this week said a software change is in the works for its 737 Max jets and Bank of America estimated it would take the aircraft manufacturer three to six months to "certify the fix."
- Bank of America kept its buy rating and $480 price target on Boeing as the bank believes the investigation would have a "definitive timeline" which would remove a great deal of uncertainty.
- The U.S. grounded all Boeing 737 Max jets following dozens of countries. Boeing has tanked more than 11 percent this week, on pace to post its biggest weekly decline since 2008.
The software fix that Boeing said it is working on for its 737 Max jets could take as long as six months, according to Bank of America.
"Once Boeing identifies the issue on the 737 MAX, the most likely scenario, in our view, is that the company will take about 3-6 months to come up with a fix and certify the fix," the bank's analyst, Ronald Epstein, said in a note Thursday.