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Friday, January 19, 2024
Boeing’s stock tumbles after report warns investigation will open ‘a whole new can of worms’
New York
CNN
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As if Boeing needed any more bad news, a scathing report from Wall Street on Tuesday cast doubt on Boeing’s ability to pass a new federal safety audit, sending its stock sinking sharply. Later Tuesday, Boeing announced an independent adviser who will lead a review of the company’s quality control.
The Wells Fargo report, entitled “FAA audit opens up a whole new can of worms,” noted that Boeing’s quality control and engineering problems have been ongoing for years. After part of an Alaska Airlines] 737 Max 9 jet fell off the plane mid-flight, the likelihood of the US Federal Aviation Administration coming out of its investigation without significant findings was very low.
“Given Boeing’s recent track record, and greater incentive for the FAA to find problems, we think the odds of a clean audit are low,” the analysts said.
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