Aerospace company Boeing (BA) is bouncing back from its recent losses, up nearly 3% in Thursday afternoon’s trading. But there may be a new problem lurking out in the depths of space, as new word about the potential return date for the Starliner capsule is farther back than some might expect.
The notion of how to get astronauts Butch Wilmore and Suni Williams back home has proven daunting. The Starliner capsule is apparently capable of returning to Earth in an emergency situation, noted NASA officials, but they do not plan on actually using it in such a fashion.
An upcoming Crew Dragon launch from SpaceX may solve the problem, as it could be used to bring the Boeing astronauts home. Yet, with the Crew Dragon launch potentially delayed until September—that hasn’t been established yet—and Starliner rapidly running out of time as it has been docked at the International Space Station (ISS) for 63 out of the 90 days it can be there, something must be done in short order. If they do come home with the Crew Dragon, however, that may stretch Wilmore and Williams’ time on the ISS to February 2025.
And Then It Got Worse
It would be easy to wonder how this situation could get worse, but new reports, signed by NASA Deputy Inspector General George A. Scott, note that Boeing’s rockets are actually subject to “an array of issues that could hinder SLS Block 1B’s readiness for Artemis IV.” These include “inadequate quality management system…escalating costs and schedules, and inadequate visibility into the Block 1B’s projected costs.”
And just to top it off, NASA officials also pointed to Boeing’s own workforce, which had “…insufficient aerospace production experience” to actually build the rockets to begin with. This, in turn, brought about “…significant program delays and increased costs.”
Is Boeing Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 29.33% loss in its share price over the past year, the average BA price target of $218 per share implies 29.45% upside potential.
