Aircraft maker Boeing (NYSE:BA) has not had a good time in the last several months, and further troubles are emerging to shake up the company. In fact, Boeing shares are down modestly in Tuesday afternoon’s trading as word emerged about another problem, this time hindering the deal between Boeing and Spirit AeroSystems (NYSE:SPR).
The deal just hit a snag, as there’s a critical issue. It will not be as easy as Boeing likely hoped to simply buy back its former property, as now, Spirit AeroSystem is making parts not just for Boeing but also for Airbus (OTHEROTC:EADSY).
That’s making valuing Spirit AeroSystems particularly difficult, especially given that Spirit AeroSystems is effectively supplying parts to Boeing’s major rival and only real competitor in the field. Worse, it turns out that Northrup Grumman (NYSE:NOC) is also a Spirit client, and that only serves to muddy up an already confusing picture.
Fly It ‘Til the Wheels Fall Off
News about another Boeing calamity hit in South Africa after a wheel fell off a 737 plane. The captain began and successfully concluded emergency landing procedures, and passengers were subsequently evacuated and put on other flights. Reports note that the wheel had been seen “disintegrating” as the plane began to taxi down the runway, ultimately leading to a “huge bang” being heard as parts of the wheel fell off outright.
This is simply the latest in a string of mechanical issues from Boeing aircraft and is enough to make one wonder if, at this rate, there will be any Boeing flights to reach the summer travel season.
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, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 17.96% loss in its share price over the past year, the average BA price target of $230.56 per share implies 36.6% 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:
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