Boeing 737 MAX crash revelations could cost shareholders $53 billion
Boeing CEO Dennis Muilenburg, as well as the company's entire board for directors, should go.
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October 22, 2019 - by STEPHEN GANDEL for cbsnews.com
- Wall Street analysts on Monday downgraded Boeing's stock and said the company's market value could drop $53 billion.
- A UBS analyst estimated the company could lose $8.5 billion in cash flow over the next five years.
- Famed consumer advocate Ralph Nader said Boeing CEO Dennis Muilenburg and whole board should go.
Boeing's revelation late last week that a company test pilot had a strong indication that a system meant to prevent the 737 Max from crashing had "egregious" issues could cost the aircraft maker and its investors tens of billions of dollars, according to Wall Street analysts.
Both of the analysts, from UBS and Credit Suisse, downgraded the stock.
The two also independently cut their price targets for Boeing's stock by $95, suggesting that the new safety evidence — and the growing legal and reputational hit to the company — could slice as much as $53 billion from the company's total worth.
The test pilot messages, and the disclosure last week that Boeing has known about them for months, has also sparked new calls for the company's top executives to resign.
Consumer advocate Ralph Nader, whose grandniece was killed in the March crash of an Ethiopian Airlines flight, told CBS MoneyWatch on Monday that Boeing CEO Dennis Muilenburg, as well as the company's entire board for directors, should go.
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