Jim Cramer looks positive on Boeing after the stock was hit at 737 Max

CNBC’s Jim Cramer advised buying the decline in Boeing after the shares traded below for two consecutive sessions.

“Even with some short-term turmoil, Boeing is perfectly positioned as the grand reopening takes place,” the host of Crazy Money said on Monday.

Dozens of Boeing-made 737 Max planes were temporarily grounded on Friday to solve a problem with the aircraft’s power supply system. Boeing shares fell 2% since the announcement, closing below $ 250 a share on Monday.

However, Cramer said circumstances do not justify the disposal of the stock, as Boeing is at a turning point.

“Boeing has too many shares for shareholders to be horrified by a bad title,” he said. “I think today’s decline in negative sales research on corporate governance is not an issue.”

The Boeing 737 Max returned to service late last year, after it was grounded globally following two fatal crashes that killed hundreds of people.

The demand for air travel is increasing as consumers become less worried about contracting coronavirus. Meanwhile, airlines are ordering more planes, which can be financed at low interest rates, Cramer said. Southwest Airlines, for example, announced last month that it will buy 100 units of the smallest Max model.

“This small issue aside, the 737 Max has indeed returned. You see, this was Boeing’s most popular aircraft and it was recertified as airlines prepared to start making orders again in anticipation of the grand reopening,” he said. he said.

“That’s why we have him for charitable trust and so far our thesis is going as expected.”

Despite sales in the last four weeks, Boeing shares have risen by more than 16% this year. The stock exceeds the S&P 500, which has increased by 10% so far.

Disclosure: The Cramer charity holds shares in Boeing.

Disclaimer