Boeing (NYSE:BA) announced plans to do more work on 50 undelivered 737 MAX aircraft, leading to delays in their scheduled deliveries. This decision was taken after the company’s supplier, Spirit AeroSystems (SPR), discovered two holes in some fuselages that were not drilled as per BA’s requirements.
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Boeing is a multinational aerospace company that designs, manufactures, and sells airplanes, rockets, satellites, and telecommunications equipment.
The quality defect was identified in 22 out of 47 fuselages that were inspected across Boeing and Spirit’s production systems. Boeing stated that there is no safety risk from the mis-drilled holes, so the existing 737 aircraft can continue to operate without any concern.
The recent quality issue contributed to the challenges faced by Boeing and the 737 aircraft. These issues are already being closely monitored in the wake of the door plug blowout event involving Alaska Airlines (ALK). Following this incident, the company faced production disruptions that could potentially affect its financial performance.
Is BA a Good Buy Right Now?
With 17 Buy and six Hold recommendations, BA stock has a Moderate Buy consensus rating. Analysts’ average price target of $263.38 implies 25.79% upside potential over the next 12 months. Shares of the company have declined by over 19% so far this year.
