Jim Cramer sees Boeing on the rise after stocks had a problem with the 737 Max issue

CNBC’s Jim Cramer advised buying the fall to Boeing after the shares traded lower for two consecutive sessions.

“Even with some short-term turmoil, Boeing is perfectly positioned when the grand reopening is in full swing,” the Mad Money host said Monday.

Dozens of 737 Max planes, manufactured by Boeing, were temporarily grounded on Friday to fix a power system problem on the plane. Shares of Boeing have fallen 2% since the announcement, closing Monday below $ 250 per share.

Cramer, however, said circumstances do not justify the dumping of the stock, as Boeing is at a turning point.

“Boeing is too eager for its shareholders to be frightened by a bad title,” he said. “I think today’s decline in some negative research on corporate governance on sales is also not an issue.”

Boeing’s 737 Max returned to service late last year after being settled worldwide following two fatal crashes that killed hundreds of people.

Demand for air travel is increasing as consumers worry less about contracting coronavirus. Meanwhile, airlines are asking for more planes, which can be financed at low interest rates, Cramer said. Southwest Airlines, for example, announced last month that it would buy 100 units of the smaller Max model.

“That little problem aside, the 737 Max has really come back. Look, this used to be Boeing’s most popular aircraft and it was re-certified properly as airlines prepared to re-order in anticipation of the great reopening, ”he said.

“That’s why we own this one for charitable trust, and so far our thesis is developing as expected.”

Despite sales over the past four weeks, Boeing shares have risen more than 16% this year. Shares outperformed the S&P 500, which has risen 10% so far.

Disclosure: Cramer’s charity trust has shares in Boeing.

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