Stock Groups

Leonardo Shares Struggle After Boeing Dreamliner Defect Report By Investing.com

by Mike Robinson

[ad_1]

© Reuters.

By Alessandro Albano

After Thursday’s heavy losses, shares of Leonardo SpA (OTC) have not recovered. The stock is up a little over 1% at € 6.74 on Friday, after dropping -7% Thursday on reports of components issues in the Boeing Co Production of 787 Dreamliner aircrafts over the last three years (NYSE:).

You can find out more at reportThe Wall Street Journal reports that the defect results in titanium parts which are less strong than required, which in turn has created a stock backlog of more than $25 billion. This defect adds to the challenges Boeing faced in relation to the 737 Max, and other U.S. government concerns.

Leonardo supplied the Boeing supplies, which he then would have purchased from Manufacturing Processes Specification.

Italian Defense Company has been able to defend itself. saying that Manufacturing Processes Specification has been “qualified also by Boeing”, and insisted, “Leonardo is the injured party and will not bear any potential costs associated with this issue”. Leonardo confirmed, too that Manufacturing Processes Specification was no longer a Leonardo supplier.

Analysts recommendations still lean towards a Buy rating, with 9 analysts out of 16 collected by the MarketScreener platform recommending the purchase compared to 6 that remain on Hold, with an average target price of € 9.27, which would be 37% upside from the current price.

Boeing for its part ended yesterday’s trading up .55%, though lagging the broader U.S. market rally.

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from relying on data including charts, buy/sell signals, and quotes. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]