Air India Boeing 787 crashes in Ahmedabad, Morgan Stanley maintains rating

Published 12/06/2025, 14:30
Air India Boeing 787 crashes in Ahmedabad, Morgan Stanley maintains rating

An Air India Boeing (NYSE: NYSE:BA) aircraft crashed Thursday during departure from Ahmedabad’s Sardar Vallabhbhai Patel International Airport. Flight AI171, bound for London Gatwick Airport, was identified as a Boeing 787 Dreamliner based on available flight data. Boeing, trading near its 52-week high of $218.80, has seen its stock surge 27.57% over the past six months despite showing weak financial health metrics according to InvestingPro analysis.

The cause of the crash remains unknown and is currently under investigation by aviation authorities. Morgan Stanley (NYSE:MS) reiterated its Equalweight rating on Boeing stock with a $200 price target following the incident.

Morgan Stanley noted the crash could represent either an isolated issue with specific circumstances or a potential system issue with the aircraft. The firm indicated a system issue would represent a worst-case scenario that could potentially ground the 787 fleet and halt new aircraft deliveries.

The investment bank acknowledged it will likely take time for investigators to determine the cause of the accident. Morgan Stanley stated it would closely monitor the ongoing investigation into the crash.

The incident increases regulatory scrutiny on Boeing and "derails the positive momentum on Boeing’s stock," according to Morgan Stanley’s analysis. The firm expects the market to react negatively to the news of the crash.

In other recent news, Air India’s Boeing 787 Dreamliner tragically crashed shortly after takeoff from Ahmedabad, resulting in the loss of all 242 lives on board, according to Indian Express. The aircraft was en route to London Gatwick when the incident occurred. Boeing has acknowledged the reports and is actively seeking more information about the crash. Spirit AeroSystems (NYSE:SPR), a key supplier for Boeing, is currently in the process of being acquired by Boeing, with the transaction expected to close in mid-2025. Meanwhile, GE Aerospace, whose engines powered the ill-fated aircraft, is dispatching a team to India to analyze cockpit data. This incident marks the first crash of a Boeing 787 since the model’s introduction, as noted by the Aviation Safety Network. Britain’s foreign office is collaborating with Indian authorities to ascertain the facts and provide support to those affected by the crash.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.