Boeing faces damaging fall in its share price as New York stock Exchange opens

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Boeing faces a damaging fall in its share price when the New York Stock Exchange opens in few hours.

The company’s shares are down around 10% in pre-market trading in the wake of a second disaster in less than six months involving its bestselling passenger jet, the 737 MAX 8.

Boeing said on Monday the investigation into the Ethiopian Airlines crash is in its early stages and there is no need to issue new guidance to operators of its 737 MAX 8 aircraft based on the information it has so far.

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“We anticipate heightened volatility in Boeing shares,” Morgan Stanley analyst Rajeev Lalwani said.

“Though it is early to draw conclusions, there may be concerns of disruption around safety, production, groundings, and/or costs, all of which should be manageable longer-term.”

He said he was not changing the bank’s positive “overweight” recommendation on Boeing shares for its customers, and that any corrective action the company has to take on its best-selling passenger plane will likely prove a longer-term buying opportunity.Other major Wall Street brokerages were yet to take a stance on the crash.

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