Another day, another problem for aerospace stock Boeing (BA), as it was recently discovered that it has a whole new mechanical issue in the construction of its iconic 737 aircraft. The move did not faze investors much, though, as shares were only down fractionally in Wednesday afternoon’s trading.
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A note from Bank of America analyst Ronald Epstein revealed that there is a whole new problem for the 737, which could “…further impact the timing of deliveries, despite the uncertainty surrounding the number of aircraft affected by this issue.” The issue in question is connected to junction boxes, which are used to run electrical cables through planes.
The junction boxes in question contain a “non-conforming component,” Boeing noted, and three planes have already been grounded accordingly. While production has not stopped at the Renton factory, it may have to at least slow as it goes back through to address the issue that has now cropped up.
An Update on Starliner
Meanwhile, the somehow totally-not-stranded astronauts of the Boeing Starliner project are facing new potential troubles of their own. We recently heard that they may be aloft until February of 2025, but they may be able to return more quickly on an upcoming SpaceX launch. However, there is an issue with that that may take SpaceX out of the picture for now.
Reports note that the space suits used by the Starliner astronauts are not compatible with SpaceX flights. Therefore, if the astronauts come back on SpaceX, they would have to travel unsuited. A final decision on the matter is expected “by the end of August,” noted a BBC report, though this date—like so much before it—may also be shifted to a later time.
Is Boeing a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 27.43% loss in its share price over the past year, the average BA price target of $218 per share implies 29.62% upside potential.
