We know that Boeing (NYSE:BA) planes have not been doing well lately. Its move to purchase Spirit AeroSystems will likely prove a huge help there, improving product quality and, thus, overall aircraft quality. There are some new concerns, however, about Boeing’s military operations, but investors are shrugging these off and sending shares up nearly 2.5% in Monday afternoon’s trading.
Boeing has quite a few problems these days. Start with its planes falling apart in flight in some cases, and look directly up into space to see the floundering Starliner mission for all the information you need on that front. But there are some new troubles brewing thanks to the Next Generation Air Dominance (NGAD) fighter, that Boeing had hoped to get in on.
Reports suggest that the US Air Force, the primary customer of such a project, has been reconsidering the entire concept. This news comes at the worst possible time for Boeing, who needed a tentpole project like this just to keep its shares aloft. In fact, reports suggest the next NGAD may be “cheaper and less advanced,” at least as far as its engines go. That’s a blow to Boeing, who needed no more such blows.
“Sweetheart Deal”
Meanwhile, Boeing is also facing down legal troubles, but it may have less to worry about here. According to the lawyer representing victims in two major Boeing crashes in the last few months, Boeing is poised to get a “sweetheart plea deal,” based on word that reportedly comes direct from the Justice Department.
The deal in question will come with “…a small fine, three years of probation and independent safety audits,” some of which were already going on under Boeing’s latest contacts with the Federal Aviation Administration (FAA). Said lawyer, Paul Cassell, noted that the families involved will “…object to this deal.”
Is Boeing Stock a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 16 Buys, five Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 11.56% loss in its share price over the past year, the average BA price target of $211.30 per share implies 13.42% upside potential.
