Boeing's Stock Tumbles After Being Downgraded
Shares of Dow component Boeing fell sharply after Wachovia downgraded the aerospace and defense company to market perform from outperform.
Wachovia said the downgrade of the aircraft maker was on the brokerage's assessment that the commercial aircraft order cycle had peaked and on concerns regarding potential delays in
Boeing's B787 program.
The brokerage said it was likely that Boeing would be forced to announce additional cost-overruns or a delay in customer delivery on the B787 program. This would put pressure on the share price, it added.
In other news from Boeing, the company announced that the airplane leasing unit of GeneralElectric , another Dow component,ordered 39 planes valued at about $5.34 billion at list prices.
GE Commercial Aviation Services will take delivery of 15 777s and 24 737-800s between 2008 and 2010. The order was booked in 2006 but previously unidentified.