We know that Boeing (NYSE:BA) had to shell out some serious cash after the Alaska Airlines (NYSE:ALK) disaster that was, for some, the first glimpse into the troubles at Boeing. But it turns out that the initial outlay didn’t stop there. In fact, Boeing just made another payment to Alaska Air. However, it didn’t hurt things with investors, as the aircraft maker is up fractionally in Friday afternoon’s trading.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
When the incident first occurred back in January, Boeing made good by offering $162 million in cash outright. But Boeing didn’t stop there; it just offered Alaska Air an extra $61 million in compensation, but this time in the form of “supplier credit memos,” which basically offer a discount on any future purchases with Boeing.
Some might call this presumptuous, but others might refer to it as a good sign, suggesting that, even after one clearly bad experience, Boeing is still well worth buying from. Meanwhile, Boeing also compensated United Airlines (NASDAQ:UAL) for “financial damages” related to the grounding of several of its aircraft.
More from the Whistleblower
Meanwhile, some of the remarks made by John Barnett, one of the two Boeing whistleblowers who were found deceased, have emerged, and the results are not a good look for Boeing. Barnett worked in the Material Review Segregation Area (MRSA), which was once regarded as a kind of career “purgatory” for “blacklisted quality managers,” noted a Jalopnik report.
Barnett noted that at one point, most of a Dreamliner fuselage simply vanished, and when Barnett sought some kind of supervisory review, the response was odd at best: laughter. Yet, when Barnett noted that the Federal Aviation Administration (FAA) should be notified about some lost parts, supervisors declared, “We’re not going to report anything to the FAA.”
What Is the Prediction for Boeing Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, eight Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 9.11% loss in its share price over the past year, the average BA price target of $223.78 per share implies 24.85% upside potential.
