Boeing Shares Fall to 7-Year Bottom as COVID-19 Headwinds Persist

The airline stock is plummeting as Boeing runs out of money

Deputy Editor

Mar 18, 2020 at 3:03 PM

Boeing Co (NYSE:BA) is down 24.3% to trade at $94.05 at last check, earlier touching a nearly seven-year low of $89, despite the Trump Administration announcing $50 billion loan plan for airlines. The aerospace firm is seeking government aid in the form of around $60 billion for itself and the entire aviation industry. Smaller requests from airlines have been coming in as COVID-19's impact is worsening, but Boeing is seeking a lifeline and has drawn down a $13.8 billion term loan, taken out only a month ago.

Boeing stock is pacing toward its third straight loss, and worst day in at least a decade. The equity is back near its 2016 lows, and sports a 71% year-to-date loss.

Analysts remain on the fence. Coming into today, 11 out of 15 covering firms sport a "hold" recommendation. However, BA's 12-month consensus price target of $273.78 sits at a 192.2% premium to current levels as well, indicating price-target cuts are well overdue.

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