Boeing to Pay Brazil’s Gol $412 Million For 737 MAX Groundings - Report

Brazil airline Gol Linhas Aereas Inteligentes (GOL) entered into an agreement with Boeing Co (BA) to get up to 2.4 billion reais ($412 million) from the planemaker as compensation for Read More... The post Boeing to Pay Brazil’s Gol $412 Million For 737 MAX Groundings - Report appeared first on TipRanks Financial Blog.

Boeing to Pay Brazil’s Gol $412 Million For 737 MAX Groundings - Report

Brazil airline Gol Linhas Aereas Inteligentes (GOL) entered into an agreement with Boeing Co () to get up to 2.4 billion reais ($412 million) from the planemaker as compensation for the grounding of the 737 MAX plane, in a mix of cash and credits, Reuters reported.

Gol said that Boeing already paid close to 500 million reais in cash. In addition, the Brazilian airline expects to receive up to 1.9 billion reais in credits that can be used for new aircraft acquisitions, and to reduce interest and depreciation expenses.

The 737 MAX aircraft has not flown in more than a year after two deadly crashes forced regulators to scrutinize the safety of its design. Brazil’s largest airline is one of Boeing’s biggest customers and had ordered more than 100 Boeing 737 MAX planes. Those orders have already been reduced and Gol said it will not make new aircraft payments to Boeing for the next two years.

Commercial airline travel has fallen off a cliff due to coronavirus-induced lockdown restrictions forcing many airlines around the world to ground the majority of their fleets and suspend aircraft deliveries. Boeing reported this week that it did not receive a single order in April, while it was also grappling with 108 order cancelations for its grounded 737 MAX plane.

The April cancellations of its 737 MAX jets were from clients including China Development Bank Financial Leasing Co and General Electric’s () aircraft unit GECAS.

According to the agreement with Gol the compensation amount is the maximum and is subject to certain undisclosed conditions. Gol said it may receive less than that.

The planemaker’s stock dropped 3% to $121.50 in U.S. trading on Wednesday, taking its year-to-date plunge to more than 64%.

TipRanks data shows that overall Wall Street analysts are sidelined on Boeing shares. The Hold consensus is based on 11 Holds and 6 Buys and 1 Sell. The $163.18 average price target implies 34% upside potential in the stock in the next 12 months. (See Boeing’s stock analysis on TipRanks).

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The post Boeing to Pay Brazil’s Gol $412 Million For 737 MAX Groundings - Report appeared first on TipRanks Financial Blog.

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Allogene Explodes 28% After-Hours On Initial ALLO-501 Data

On Wednesday, Allogene (ALLO) revealed positive initial data from its ALLO-501 CD19 allogeneic CAR T, showing both activity and a tolerable safety profile. The news sent shares surging 28% in Read More... The post Allogene Explodes 28% After-Hours On Initial ALLO-501 Data appeared first on TipRanks Financial Blog.

Allogene Explodes 28% After-Hours On Initial ALLO-501 Data

On Wednesday, Allogene (ALLO) revealed positive initial data from its ALLO-501 CD19 allogeneic CAR T, showing both activity and a tolerable safety profile. The news sent shares surging 28% in Wednesday’s after-hours trading.

Allogene announced preliminary data from the Phase 1 dose escalation ALPHA trial of ALLO-501 in conjunction with the release of ASCO (American Society of Clinical Oncology) abstracts.

As of the January cutoff, 3 non-Hodgkin lymphoma (NHL) patients achieved complete responses and 4 achieved partial responses, for an ORR [overall response rate] of 78% (n=7/9).

“Although early, we believe these data suggest that ALLO-501 could go toe-to-toe with autologous CAR-Ts on performance and safety—setting a new bar for allogeneic CAR-Ts in NHL and underscoring the importance of Allogene’s antibody-dependent approach to lymphodepletion” commented Oppenheimer’s Mark Breidenbach following the report.

He anticipates updated results from 11 evaluable patients in the May 29 oral presentation at ASCO—including patients treated with high-dose ALLO-647, which may further improve efficacy.

As a result of these ‘encouraging early results’, Breidenbach reiterated his buy rating on the stock while ramping up his price target from $44 to $50 (61% upside potential).

Meanwhile JP Morgan’s Cory Kasimov wrote: “In our view, this is good initial data but it hard to interpret relative to other CAR T / CD19 approaches given the limited details in the abstract (i.e. what doses, which histologies, and the amount of follow-up for patients still responding).”

Ultimately, the JP Morgan analyst looks to the upcoming ASCO presentation (which will also include patients treated at a higher ‘647 dose) to further evaluate.

ALLO currently shows a cautiously optimistic Moderate Buy consensus from the Street with 7 recent buy ratings vs 4 hold ratings. The average analyst price target stands at $34 (11% upside potential). (See ALLO stock analysis on TipRanks).

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The post Allogene Explodes 28% After-Hours On Initial ALLO-501 Data appeared first on TipRanks Financial Blog.

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