Some of Boeing’s (NYSE:BA) and Airbus’ (OTC:EADSY) recently manufactured aircraft have titanium components that were sold with fake documentation of authenticity, raising concerns about their structural integrity, according to an exclusive New York Times report.
Details of the Investigation
The report stated that both Spirit Aerosystems (NYSE:SPR) and the Federal Aviation Administration (FAA) are investigating the falsified documents. Spirit AeroSystems is a key supplier for both Boeing and Airbus. The investigation started after a parts supplier found small holes in the material from corrosion.
The FAA stated that it was investigating the scope and safety implications of planes made with parts using fake documentation. It was not clear how many planes were made with this fake material. Boeing made a voluntary disclosure to the FAA that a distributor may have falsified records and issued a bulletin advising suppliers to watch for falsified records.
This investigation comes at a bad time for Boeing when it is already facing a series of mishaps and safety issues.
Is BA Stock a Good Buy?
Analysts remain cautiously optimistic about BA stock, with a Moderate Buy consensus rating based on 17 Buys, seven Holds, and two Sells. Over the past year, BA has declined by more than 15%, and the average BA price target of $216.30 implies an upside potential of 20.9% from current levels.
