Boeing bolt issue shows aerospace ramping difficulties, says BofA

BofA analyst Ronald Epstein keeps a Buy rating on Boeing with a $275 price target after the Federal Aviation Administration announced that it is closely monitoring newer deliveries of Boeing 737 MAX aircraft for loose bolts in the rudder control system. While the issue “appears contained for now,” it is a reminder to investors that “even quality escapes the size of nuts and bolts demonstrate how difficult ramping production in aerospace can be,” the analyst tells investors in a research note. The firm, however, says recent China deliveries further de-risks Boeing’s widebody delivery profile. It also expects tailwinds from strong commercial aerospace demand to continue.