Boeing (NYSE:BA), a leading manufacturer of commercial airplanes, defense products, and space systems, is set to suspend production for a day. According to a Reuters report, the company will conduct a quality stand-down on Thursday, January 25, at its Seattle-area facility responsible for manufacturing 737 aircraft.
Notably, a quality stand-down is a brief interruption in production to evaluate and resolve quality issues.
This initiative is part of Boeing’s broader plan to implement stand-downs across all its commercial production facilities and fabrication sites in the coming weeks. This decision comes in the wake of actions taken by the company following an event on an Alaska Airlines (NYSE:ALK) flight where a piece of the plane dislodged mid-flight.
This temporary pause should allow Boeing to assess its operations and offer suggestions for improvements to avoid any such mishaps. Despite the concerning incident with Alaska Airlines, Boeing continues to experience robust orders and deliveries, driven by strong commercial demand.
Analyst Noah Poponak’s Opinion
Goldman Sachs analyst Noah Poponak reiterated a Buy on BA stock on January 9, citing improvements in output and increased deliveries.
The analyst expects an acceleration in production in 2024. He added that 787 deliveries were strong in December 2023 and believes that Boeing will be able to increase production rates for the aircraft throughout 2024.
What is the Prediction for Boeing Stock?
Boeing stock has dropped nearly 19% year-to-date due to concerns regarding the Alaska Airlines incident. However, Wall Street is bullish about Boeing stock due to its solid deliveries and backlog.
With 18 Buy and five Hold recommendations, BA stock has a Strong Buy consensus rating. Analysts’ average price target of $272.8 implies 28.98% upside potential over the next 12 months.
