Oh boy, oh Boeing (BA), as the aerospace firm finds its past mistakes catching up to it yet again. The crash of a Jeju Air jet in South Korea—and the subsequent investigation that followed—left Boeing shares on the back foot once more. Boeing shares dipped 2% in Monday afternoon’s trading as the latest damage emerged.
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Sunday saw one of the latest incidents, as a Jeju Air Boeing pulled a belly landing when its landing gear failed to deploy. The 737-800 then slid along its belly down the runway, and into a concrete wall. The crash ultimately killed 179 passengers, leaving just two flight attendants as the sole survivors. Video reports noted that a bird may have hit one of the engines, and the South Korean government plans a full safety investigation of all 737-800 aircraft operating in the country.
As bad as that was, it was not the only thing, either; a KLM Airlines Boeing flight ended up skidding off the runway after a “hydraulic failure” prompted an emergency landing during a flight from Oslo to Amsterdam. Reports noted a “loud noise” had been heard, and smoke was spotted coming from the left engine. Ultimately, the aircraft went off the tarmac and ended up “into the grass at low speed,” noted a New York Post report.
At Least the Bonds are Holding Up
So while Boeing shareholders digest this latest set of disasters, one unexpected development emerged. Boeing has a set of 7.008% bonds that mature in 2064, and spreads on those bonds widened two basis points from last week.
Further, noted BondCliQ, a data solutions provider, Boeing bonds were also lightly-traded, which suggests that the bond trade is minimally fazed by the latest string of Boeing-related accidents. Boeing has been frantically trying to adjust under new CEO Kelly Ortberg, including pulling in new capital, cutting costs at a fever pitch, and cutting off unprofitable programs.
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 14 Buys, seven Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 29.61% loss in its share price over the past year, the average BA price target of $190.29 per share implies 6.28% upside potential.
