Air India crash increases regulatory scrutiny on Boeing, says Morgan Stanley

After an Air India plane crashed on departure, Morgan Stanley analyst Kristine Liwag noted that available flight data suggests the aircraft was a Boeing (BA) 787 Dreamliner, though the cause of the crash is not known at this time as it is under investigation. Given the recent history of tragic airline incidents, the “best-case scenario for Boeing’s stock” is that this event is due to specific circumstances like pilot error and does not affect new airplane deliveries, while the “worst-case scenario” is a system issue that could potentially ground the fleet and halt new aircraft deliveries, the analyst tells investors. In either case, this event once again increases regulatory scrutiny on Boeing, adds the analyst, who maintains an Equal Weight rating and $200 price target on Boeing shares, which are down $13.10, or 6%, to $200.90 in pre-market trading.