Yesterday’s 787 update from the Boeing Co. didn’t ease the worries of analysts at Morgan Stanley.
Shares of the aerospace company traded down Wednesday after Morgan Stanley downgraded Boeing’s stock from overweight to equal-weight. The broker noted “a new level of concern the 787 risks are likely to linger over the stock and not be retired as we had earlier believed.”
On Tuesday, Boeing officials assured analysts and media that their delayed 787 Dreamliner would stick to its revised schedule. Pat Shanahan, the newly appointed 787 leader, said he has reviewed all facets of the Dreamliner program and has implemented changes, including the shifting of management roles, where necessary.
Although Shanahan pegs incomplete structures coming from Boeing’s global partners as the 787’s biggest challenge, he believes the company has made progress on that front.
Analysts, however, felt that Boeing fell short in providing details about how it will navigate an aggressive flight test program while ramping up production to deliver 109 Dreamliners by the end of 2009.
Boeing’s shares dropped as much as 3.6 percent Wednesday and traded at about $86.74 (down more than 2 percent) at 11 a.m. PST.
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