Why Boeing's shares will regain altitude

The aerospace giant’s 737 Max model has been grounded. But Boeing shares should bounce back.

Boeing 737 Max

The new 737 Max model is expected to return in 2020
(Image credit: JOHN D PARKER 2018)

It's said that when things go wrong at highly rated companies investors can be unforgiving. Except, it would seem, if the firm in question is Boeing (NYSE: BA), the world's largest aerospace group. It has lost two of its 737 Max aircraft in fatal crashes and the model is now grounded indefinitely. It can't deliver a big backlog of orders. Yet the shares are still up 7% this year and 13% above December's lows.

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Investment columnist

Stephen Connolly is the managing director of consultancy Plain Money. He has worked in investment banking and asset management for over 30 years and writes on business and finance topics.