The US Federal Aviation Administration (FAA) is investigating manufacturing flaws in Boeing 787 Dreamliner jets potentially stretching back almost a decade, the Wall Street Journal reported on Monday, citing an internal government memo and people familiar with the matter.
The US aviation authority is probing the quality-control lapse issue after Boeing (BA) stated in August that it has removed eight 787 Dreamliners from service after finding two distinct manufacturing issues in the fuselage section. The aircraft manufacturer had told the regulatory body that certain plane parts of this model jets did not conform to its production standard, according to the report.
Over 950 Dreamliners are currently in service. As of August 31, the company had an order backlog of 533 jets of the 787 model. (See BA stock analysis on TipRanks).
On August 11, Cowen analyst Cai Rumohr had noted that the company’s 787 deliveries remain depressed in July despite easing COVID-19 related travel restrictions. Ruhmohr reiterated his Hold rating on Boeing stock and kept the price target unchanged at $150 (12.3% downside potential).
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys, 8 Holds, and 2 Sells. The average analyst price target of $187.63 implies upside potential of 9.7% to current levels. Shares are down 47.5% year-to-date.