Indonesia has lifted the ban on Boeing’s (NYSE: BA) 737 Max planes, according to Reuters. Shares of the aviation, aerospace, and defense technology company closed 1.5% higher on Tuesday.
Details
Following the evaluation of changes made to the plane’s system by regulators, Indonesia has allowed Boeing 737 Max planes to resume flying in its territories, effective immediately. The ban was imposed three years ago following the crash of one of the aircraft, killing all 189 people on board.
The 737 MAX was grounded by aviation authorities globally months later, after a plane operated by Ethiopian Airlines had a similar deadly accident in March 2019.
As per the Indonesian transport ministry, airlines are required to follow airworthiness directives and inspect their planes before the resumption of 737 MAX flights. The government will also inspect the planes.
Boeing’s 737 MAX recently returned to service in the United States and Europe, and grounding orders have been lifted in Australia, Japan, India, Malaysia, Singapore, and Ethiopia.
Wall Street’s Take
Recently, Charles Minervino, an analyst from one of the Top Research Firms, Susquehanna, reiterated a Buy rating and a price target of $243 (17.89% upside potential) on the stock.
Consensus among analysts is a Strong Buy based on 13 Buys and 3 Holds. The average Boeing price target of $268.71 implies 30.36% upside potential. Shares have decreased 4.9% over the past year.
Investors
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Boeing stock, with 2.7% of investors maintaining portfolios on TipRanks increasing their exposure to BA stock over the past 30 days.
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