Boeing (NYSE:BA) has suspended the first-ever launch of its Starliner astronaut capsule over two newly discovered safety issues. Scheduled for July 21 this year, the spacecraft was intended to embark on a mission to transport two NASA astronauts to the International Space Station (ISS).
The company’s engineers found that the soft links, used in Starliner’s three key parachutes, have a lower-than-expected failure load limit. As a result, in the event that one parachute fails, the other ones would be unable to support the weight of the Starliner, which would reduce the likelihood of a safe landing for the spaceship.
Additionally, it was discovered that the glass cloth tape used to wrap the wire harnesses may catch fire under certain conditions. In order to reduce the risk of fire, BA is currently seeking another acceptable tape to wrap over the current one.
It is important to note that under a 2014 agreement between Boeing and NASA, Starliner would be used for operational trips to and from the International Space Station. But since then, BA has seen a number of setbacks.
The Starliner’s maiden uncrewed test flight, which took place in December 2019, was unable to reach the intended orbit and had to land sooner than planned. After that, NASA requested that Boeing make 80 different corrections to the spacecraft. Furthermore, in May 2022, the second test mission successfully reached the space station but encountered delays due to valve issues.
Is Boeing Stock Expected to Go Up?
BA stock is up 14% over the past six months. The company has been able to grab several large contracts over the past few months, which signals growing confidence in Boeing aircraft. Additionally, Boeing’s initiatives to boost 737 MAX production will enable speedier deliveries and therefore enhance topline growth.
Among the 10 top Wall Street analysts giving ratings on BA stock, eight recommend a Buy and two suggest a Hold. Further, the consensus 12-month price target of all top analysts of $242 implies an upside potential of 16.4%.
It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations. Moreover, each analyst has a remarkable success rate.
