It’s been a lousy couple of years to be aircraft maker Boeing (NYSE:BA). Between a pandemic, supply chain crunches, and now what might have been a recovery getting struck down again with new delays, it’s been one thing after another. Investors are mildly irked by the latest troubles at Boeing, with Boeing down fractionally in Tuesday afternoon trading.
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This time, it seems the supply chain problems have returned to haunt Boeing’s production once more. Boeing announced that it was delaying shipment on as many as 90 787 Dreamliner models thanks to a series of parts that weren’t quite up to snuff. Most of the problem seems to trace back to “improperly-sized gap fillers” in the tail fin’s horizontal stabilizer.
Naturally, this isn’t good news by any stretch, as it puts substantial risk on Boeing losing its market share to major rival Airbus (OTCPK:EADSY). Both companies were facing a spike in orders as travel starts to reassert itself in the wake of the pandemic. But with Boeing temporarily hindered by the newest round of defects, that opens up the possibility that Boeing buyers may switch to Airbus. However, a CNBC report noted that this issue won’t really impact the full-year projections for 787 Dreamliner deliveries. They still expect between 70 and 80 of the planes to go out this year.
It’s a rough setback for Boeing, but analysts are still on board. Five Hold ratings and 10 Buys make Boeing stock a Moderate Buy by analyst consensus. Further, with an average price target of $238.40, it offers investors 14.83% upside potential.
