The U.S. Department of Justice (DoJ) has initiated a criminal investigation into the Boeing (NYSE:BA) 737 MAX blowout incident that occurred on an Alaska Air Group’s (NYSE:ALK) flight in January, per the Wall Street Journal report. As part of the inquiry, the regulator interviewed a few of the passengers and the crew members.
The Department of Justice is also looking into whether Boeing complied with an earlier settlement that resolved a federal probe into two deadly 737 MAX crashes that happened in 2018 and 2019.
Brief History
On January 5, a door panel flew off a Boeing 737 MAX 9 jet mid-flight and led to an emergency landing. Following this incident, the company has been facing increased scrutiny from regulatory authorities. As part of the scrutiny, the U.S. Federal Aviation Administration (FAA) ordered the temporary grounding of 171 MAX 9 jets.
Then, in February, the National Transportation Safety Board released a preliminary report. According to the report, one of the main reasons for the accident was that four crucial bolts securing the door plug were apparently missing. These bolts played a critical role in securing the door plug in its proper position.
Is BA a Good Buy Right Now?
With 17 Buy and six Hold recommendations, Boeing has a Moderate Buy consensus rating. Analysts’ average price target on BA stock of $264 implies 33% upside potential over the next 12 months. Shares of the company have declined by about 24% so far this year.
