Boeing shares rise as preliminary probe finds no evidence of battery fault
(Reuters) - Shares of Boeing Co (BA.N) rose as much 3 percent in early trade on Monday as an investigation into a fire that broke out on a 787 Dreamliner in London did not blame the plane's batteries.
News of the fire had sent Boeing's shares down 4.7 percent on Friday, knocking $3.8 billion off the company's market value.
"Thankfully the British authorities have ruled out the batteries as a cause of the fire," Sterne Agee & Leach Inc analyst Peter Arment wrote on a research note.
Britain's Air Accidents Investigation Branch (AAIB) on Saturday said it found no evidence the fire was caused by the plane's batteries.
Arment and several other analysts kept their ratings on the company's stock.
"We think it will be several days to get an official ruling of the event, but so far this looks to be a one-off issue that should not impact our delivery forecast," Arment said.
The planemaker resumed deliveries of the Dreamliner jet only in May, ending a period of nearly four months in which it was unable to provide new planes because of safety concerns about the battery system.
In a July 14 note, Oppenheimer analyst Yair Reiner said the incident is an opportunity for investors to buy the Boeing shares on weakness.
"The scarcity of information makes it difficult to have much conviction. But we lean toward seeing this as a hiccup and weakness in the shares of BA and 787 suppliers as a buying opportunity."
Reuters, quoting sources and analysts, reported that it would likely be days before the U.K. agency was able to draw conclusions on the cause, and an initial report might only come at the end of this week.
Boeing shares were up 2 percent at $104.02 at 1017 ET on Monday.
(Reporting by Bijoy Koyitty in Bangalore; Editing by Sreejiraj Eluvangal)