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Boeing: Canaccord Genuity cuts target price on 737 MAX

(CercleFinance.com) - Canaccord Genuity said that it has lowered its target price for Boeing from 370 dollars to 350 dollars to reflect a lower production ramp for the 737 MAX.

In a note to clients, the Canadian broker said it believes management will have to take a substantial charge in the fourth quarter to include incremental costs associated with the MAX, an area of "increasing focus" for investors.

"We agree that now is the time for new CEO Calhoun to get as much bad news out as possible and to provide the company with some additional buffer heading into 2020," Canaccord added.

The broker said it is surprised the stock has resisted this well, as the planemaker is perhaps facing the most severe crisis in its 100-year history, pointing out that it continues to see the financial risk as not fully priced in.

Canaccord Genuity maintains a "hold" rating on the Boeing share.

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