When a whistleblower reveals that they were basically told to “shut up” ahead of a session before Congress, it generally doesn’t reflect well on the company in question. Boeing (NYSE:BA) proved no exception to this; silencing whistleblowers is the kind of thing typically reserved for companies that appear in science fiction. And shareholders weren’t exactly pleased either, sending Boeing shares down fractionally as the whistleblower took the stand.
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Sam Salehpour, the whistleblower who told us about the very real possibility that the 787 Dreamliner could fall apart in flight, noted that Boeing management proved remarkably resistant to pretty much everything he had to say about the topic. He’d reported several safety issues—he noted in testimony before Congress—but was largely ignored.
At some points, he revealed, he’d been threatened in a roundabout, indirect fashion, noting: “They call you on your personal phone to let you know that they know where you live. They know where you are. And they can hurt you.”
And the Hits Kept on Coming
It only got worse for Boeing as the testimony continued. Salehpour revealed that there was “absolutely” a culture of retaliation at Boeing, noting that he was not only “ignored” but also “told not to create delays.” “I was told frankly to shut up,” Salehpour noted in perhaps the biggest hit of the session.
At least, it was until Salehpour, visibly shaken and beginning to tear up, noted that he was “at peace” with his decision to come forward. He noted, “If something happens to me, I am at peace because I feel like coming forward, I will be saving a lot of lives.”
Is Boeing Stock a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 17 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 18.46% loss in its share price over the past year, the average BA price target of $236.63 per share implies 39.46% upside potential.
Is It Wise to Allocate $1,000 Toward BA Stock Right Now?
Before you hurry to invest in BA, think about the following:
TipRanks’ team has built the Top Stocks Portfolio for investors, and Boeing is not included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant gains in the years ahead.
