Boeing downgraded by Barclays on survey showing fliers will avoid 737 Max

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A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California, U.S., March 26, 2019.

Mike Blake | Reuters

Barclays lowered its rating of Boeing shares to equal weight from overweight on Tuesday as the firm’s survey of airline passengers says many people will avoid the 737 Max “for an extended period” once the aircraft is flying again.

“In order to gauge perception of the 737 MAX, we surveyed 1,765 fliers in N America and Europe, reflecting a broad mix of age groups, income levels and frequency of airline travel,” Barclays said in a note to investors.

“Nearly half won’t fly MAX for year or more … if given the choice between a MAX and another aircraft type on otherwise identical flights, 52% would choose the other aircraft type,” Barclays said.

Boeing shares fell 1.3% in premarket trading from Monday’s close of $371.60 a share.

Barclays also lowered its price target on Boeing’s stock to $367 a share from $417 a share.

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