Boeing sold off on comments about 777X program, says JPMorgan

JPMorgan says shares of Boeing (BA) sold off yesterday during a management presentation at an investor conference. The reason seems to be the increased potential for a charge on the 777X program if there is a delay to the entry into service forecast, the analyst tells investors in a research note. JPMorgan believes that while this is “clearly not good news,” such a delay is not surprising given the slow pace of the certification process. The development also does not reflect any new technical issues with the aircraft and should not change the overall cash flow trajectory of the program dramatically over the next few years, the analyst tells investors in a research note. JPMorgan keeps an Overweight rating on Boeing with a $251 price target