Federal Aviation Administration (FAA), the U.S. aviation safety regulator, has given its green light to Boeing Co. (NYSE: BA) to resume deliveries of its 787 Dreamliner aircraft, The Wall Street Journal reported, citing people with knowledge of the matter.
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The regulator said that the aircraft meets the airworthiness certification standards as the company has made the required changes. The approval allows Boeing to resume deliveries as soon as August 10.
Texas-based American Airlines (NASDAQ: AAL) will be the first airline company to take possession of the new 787 Dreamliner since deliveries were halted last year. AAL plans to begin the commercial service of the aircraft in the coming weeks.
Meanwhile, analysts expect the Chicago-based company to deliver around 10 to 20 787 Dreamliners this year.
Several production defects were found in Boeing’s 787 Dreamliner in fall 2020. This led to the FAA investigating the issues. As of now, the regulator is inspecting every aircraft before approving.
Is Boeing a Buy, Sell or Hold?
On TipRanks, analysts have a Strong Buy consensus rating on Boeing, which is based on 11 Buys and three Holds. BA’s average price forecast of $209.23 implies upside potential of 26.1%.
Earlier this month, Kristine Liwag of Morgan Stanley (NYSE: MS) reiterated a Buy rating on the stock with a price target of $215 (29.6% upside potential).
Liwag thinks that the preliminary regulatory approval of the 787 Dreamliner, which was received last month, is “a major milestone and a positive catalyst that unlocks another lever for free cash flow generation.”
Is Boeing Stock Expected to Go Up?
The FAA’s approval is expected to give BA stock a much-needed boost. The 52-week low stock price for Boeing is $113.02, which it touched on June 14, 2022. BA stock has lost over 20% so far this year, following continued delays in commencing the deliveries of 787 Dreamliners. Investors could buy the dip as the company’s future looks promising.
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