Wall Street pegs Boeing's 737 MAX bill at more than $25 billion

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Wall Street pegs Boeing's 737 MAX bill at more than $25 billion
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Boeing Co's bill for the 737 MAX grounding could balloon to more than $25 b...

) bill for the 737 MAX grounding could balloon to more than $25 billion, analysts estimated on Wednesday, a day after the U.S. planemaker warned of further delay in returning its once best-selling jet to service.

The company has already booked $9 billion in costs related to the grounding, including $5.6 billion as compensation for airline customers and $3.6 billion in charges to cover additional production costs. “Our estimates assume 737 MAX deliveries restart in Q3 2020,” Kahyaoglu said, lowering the brokerage’s price target on the stock to $390 from $420.

Added to the delay, weak Chinese demand for its widebody 787 Dreamliners as well as production problems with its new 777X jetliner have also made investors jittery, Vertical Research analyst Robert Stallard said, downgrading the stock to “hold” from “buy” and lowering his target price to $294 from $388.

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