We are reassessing our key valuation assumptions for United, Southwest, Delta, American, and Air Canada in the wake of the coronavirus outbreak.
The wide-moat firm continues to deal with the grounding of the 737 MAX, and we're slightly lowering our fair value estimate.
We view Boeing’s updated return to service estimate of mid-2020 as reasonable, assuming no as-of-yet unknown problems are discovered.
As this change in leadership does not affect our free cash flow assumptions, we are maintaining our $349 fair value estimate.
We still believe the company’s wide moat offers structural protection, though.