Bank of America announced on Thursday that it had lowered its recommendation on Boeing shares from 'buy' to 'neutral', with a price target lowered from $255 to $225.

In a note published this morning, the financial intermediary explains that it prefers to stay away from the issue following the recent in-flight ripping of a door on an Alaska Airlines aircraft, an incident that has led to increased regulatory oversight by the US authorities.

In its view, the strict controls decided by the US Civil Aviation Authority (FAA) should prevent Boeing from achieving its production, delivery and cash flow targets as communicated at the Investor Day in 2022.

BofA believes, however, that this crisis could be a blessing in disguise, as it could push the aircraft manufacturer, its suppliers and regulators to focus on aircraft quality and best production practices, without having to worry about immediate financial targets.

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