Give aerospace stock Boeing (BA) credit; it has made a lot of advances of late in improving its product quality. That is likely due, in large part, to the ongoing Federal Aviation Administration (FAA) oversight, which is now expected to continue “indefinitely.” But it was good news sufficient for investors, who sent shares up modestly in Tuesday afternoon’s trading.
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The word from Manufacturing Dive noted that, last week, Boeing offered up an update on its “safety and quality plan,” and said update included a slew of different points designed to improve confidence in Boeing products once more.
The update noted that new “random quality audits” had been introduced for “documented removals,” as well as new rounds of “product safety and quality training.” Boeing also added on a slate of inspections to take place at Spirit AeroSystems (SPR). These are some of the more specific features included; the report noted that the initiative has four key areas to address: simplifying processes at manufacturing, augmenting training for the workforce, cutting product defects out of the picture and improving on a “safety and quality culture.”
Welcome to the Point, Secretary Buttigieg
With Transportation Secretary Pete Buttigieg having about two weeks left before he is sent back to South Bend, Indiana, he had a few parting words for Boeing, noted a Reuters report. Notably, that “Boeing has more to do” in terms of improving its culture. Which is especially safe for him to say, given that Boeing’s plans are all around doing exactly that.
But the effort that Boeing has currently expended was sufficient enough for Jefferies analysts, who maintained their Buy rating on Boeing shares, and also hiked their price target from $200 to $205. Boeing got a boost from its defense operations, which “…appears balanced and lacks positive catalysts.”
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, six Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 24.37% loss in its share price over the past year, the average BA price target of $195.26 per share implies 12.72% upside potential.
