After Boeing announced last night that it would recognize a $4.9B charge associated with disruptions related to the 737 MAX grounding, Morgan Stanley analyst Rajeev Lalwani laid out three key reasons why he views the news positively. First, Boeing noted that its "best estimate at this time" is for a return to service for the MAX in "early" Q4, which Lalwani called the first time the company has proactively put forth a return to service date. Second, the company has avoided an additional production cut, or possibly a halt, as a result of the prolonged grounding. Third, Boeing's production update pointed to a ramp to 57 per month in 2020 and the company said it expects built inventory to be released over "several quarters following return to service," which the analyst said supports his view for a path to normalization through next year and by 2021. Lalwani keeps an Overweight rating and $500 price target on Boeing shares, which are up 2% to $369 in pre-market trading.

Barclays analyst David Strauss lowered the firm's price target on Boeing to $190 from $235 and keeps an Equal Weight rating on the shares. The company reported 13 total deliveries in Q1, four storage and nine off line, the analyst tells investors in a research note.