Production Halt
Boeing Co. temporarily halted deliveries of its 787 Dreamliner jets on Thursday, resulting in a 3.9% drop in its stock on Friday. The pause in deliveries was due to a documentation issue related to a fuselage component, which Boeing discovered while reviewing certification records. The issue was an analysis error by its supplier, Spirit AeroSystems, related to the 787 forward pressure bulkhead, which acts as a barrier between the pressurized interior cabin and the radome (or nose cone). The error was submitted several years ago and was discovered by Boeing this past week, according to a person familiar with the issue. While working to extend the operating timeline for the component, the error was discovered, which led to a halt in deliveries.
This issue is unrelated to a previous quality problem involving gaps around the forward pressure bulkhead that was discovered by the Federal Aviation Administration (FAA) in 2021 and contributed to the delivery stoppage. When Boeing obtained approval from the FAA to restart Dreamliner deliveries, the company said it was required to outfit those 787s with a modified version of the forward pressure bulkhead that would resolve previous quality problems. That version of the component was given a temporary operational limit of four years, providing Boeing time to update its documentation. The current issue should not result in any design changes, and planes in service should continue to fly, according to analysts. Boeing had expected to deliver 787s this month prior to the issue being found, and those deliveries will be delayed until the company obtains FAA approval.
BA Stock Price Forecast & Analysis
According to 19 analysts, the average target price for The Boeing Company’s stock over the next 12 months is USD 200.24. This suggests that the analysts believe the stock is currently overvalued, as the target price is lower than the current price of USD 208.13.
Additionally, the average analyst rating for The Boeing Company is “Buy,” indicating that analysts are generally positive on the company’s future prospects. However, Stock Target Advisor’s own analysis of the stock is “Bearish,” which is based on 2 positive signals and 8 negative signals. This suggests that some analysts are more cautious about the company’s outlook.
Over the past week, The Boeing Company’s stock price has decreased by 1.92%, while over the past month, it has decreased by 0.88%. However, over the last year, the stock price has increased by 5.96%, indicating that the company has performed well over the longer term.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
