It’s a good thing that aerospace company Boeing (BA) has a new CEO because it’s absolutely in need of something—anything—to fix it. The latest string of reports says that things are much more out of whack than anyone expected, and investors sent shares plummeting nearly 6% in Friday afternoon’s trading.
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With the Starliner mission now approaching its third month overdue—astronauts were supposed to be home June 14—reports note that NASA is prepared to go hat in hand elsewhere to get the astronauts back home. NASA is “considering all options,” which is something that really hasn’t been heard of much previously, and that includes hitching a ride on SpaceX’s Crew Dragon.
In fact, reports suggest that it’s actually a better than 50/50 chance that the Starliner crew will not come home on Starliner after all, but rather in Dragon. That’s not confirmed yet, but the odds are starting to favor Boeing’s competition on this. That might ultimately spell the end of the Starliner project. NASA’s constant delay on a decision, and a recent award to SpaceX for a “special study for emergency response” suggests Starliner’s days may be numbered. Worse, Starliner is taking up a docking space that might be needed for Crew Dragon when it launches.
And It Gets Worse from There
This is bad enough, but it turns out that two other problems emerged for Boeing. First, there’s a new problem with the KC-46, an aerial refueling and transport aircraft. A new “top-tier deficiency,” as it’s being called, is related to a faulty fuel pump whose vibrations are damaging air ducts. This is actually part of a “running list” of such problems already in play.
And just to top it off, the Federal Aviation Administration (FAA) is looking into a new directive around the 787 Dreamliner. The new directive would require record checks of maintenance or inspections on the 787 Dreamliner, as there was a missed test for the aircraft’s main landing gear. Reports noted that around 156 planes overall would be impacted by the directive.
Is Boeing Stock a Buy or Sell?
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 27.2% loss in its share price over the past year, the average BA price target of $218.74 per share implies 29.65% upside potential.
