Boeing inspections lower 737 guidance probability, says Deutsche Bank

Deutsche Bank kept a Hold rating on Boeing after Air Current reported that Boeing (BA) and Spirit AeroSystems (SPR) have expanded the scope of 737 MAX aft pressure bulkhead inspections. Boeing today confirmed the expanded inspections in an email to Bloomberg. Following the report, one might reasonably expect incremental pressure on 737 deliveries in Q4, which may further lower the probability that Boeing is able to achieve the low-end of its full year 737 delivery guide of 400 aircraft, the analyst told investors in a research note. The firm expects Boeing, Spirit and other equipment-oriented stocks to trade off today given the incremental uncertainty. Deutsche has a Hold rating on Boeing. The stock in afternoon trading is down 3% to $185.45.