- Boeing has closed March below $150, significantly below the $180 recovery peak.
- The relative calm in broader markets has not been reflected in the planemaker's shares.
- Bailout by the government is on the cards amid the crisis.
Boeing has closed the turbulent month of March below $150 per share. The NYSE traded planemaker has been hit by the coronavirus crisis. Flights are grounded amid travel restrictions, and airlines are not keen to buy additional aircraft as the future remains highly uncertain.
The Chicago-based company has large factories around Seattle, the first cluster of Covid-19 cases in the US, and has also suffered from production issues as workers could not perform their jobs. The current crisis joined the Max 737 debacle that had dogged the firm earlier and caused a change in management.
However, Boeing's stock price recovered from the lows around $95. One reason was a broad recovery in equities amid liquidity injections from the Federal Reserve. Moreover, the firm may receive support from the government as part of the fiscal rescue package passed by Congress.
Boeing Stock Forecast
But now, the fresh fall is indicating that investors may be losing faith in a potential bailout. The share of the company led by Dave Calhoun has shed some 15% while the S&P index has seen ups and downs since then.
Boeing is a national champion – with competition coming only from Airbus, Europe's planemaker. It is hard to believe that Washington will let it fail, under whatever circumstance.
BA traded close to $300 in early March, when the crisis had already hit Asia and Europe. It may have room to rise from its lows.
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