Bernstein analysts cut their price target for Boeing (NYSE:BA) shares to $240 from $272 in a note Monday, maintaining an Outperform rating on the stock.
Since the January 5th MAX-9 accident with Alaska flight 1282, Bernstein said it sees Boeing's stock as "essentially in a purgatory situation" until three issues are resolved.
The firm revised its delivery and free cash flow (FCF) outlooks downward and now expects FCF of just $1.6bn for 2024 and $8.5bn in 2026 - the company's prior guidance.
"Signs of recovery are needed for confidence in a longer-term ramp. Tied into this is conflict on the factory floor, which includes the Boeing/Spirit relationship (not yet resolved)," said Bernstein.
"Given vocal criticism of Boeing by airline customers, there is an increasing likelihood that some airlines may be willing to replace 737s in fleets or subfleets with A320 family aircraft. This could lead to a long-term share shift that we previously saw as unlikely," analysts added.
Even so, the firm believes Boeing will remain part of a successful duopoly, although analysts acknowledge that the path there is more uncertain and the end result could now place the company in a weaker position.