“Dynamic” Production Mode On: Boeing Stock (NYSE:BA) Notches Up

So there is good news afoot for aerospace stock Boeing (BA) investors. At least, based on the word from one of Boeing’s biggest suppliers, there is. Boeing is now back in a more “dynamic” production mode, which means that it should be ready to start pushing the production cap that the Federal Aviation Administration (FAA) set on it. That news proved good enough for investors, who gave shares a fractional boost in Thursday afternoon’s trading.

Safran (SAFRY), one of Boeing’s biggest suppliers, revealed how Boeing’s production lines were firing up once more. And Boeing itself provided an assent to that, noting that it looked to hit that 38 planes per month cap “over the next couple of months,” according to word from Doug Ackerman, vice president of quality with Boeing Commercial Airplanes.

Though Safran also noted that the recent uncertainty surrounding Boeing has made for an unexpected benefit: a rising demand for parts and services. The demand for “aftermarket services for jet engines” was on the rise. But Boeing was clearly getting things back on track, leaving Safran with the somewhat unenviable position of losing a line of business as one of its key customers got its collective act together.

Fraud Case?

Meanwhile, the criminal proceedings over the two fatal 737 Max plane crashes is still going on, even as some reports from earlier suggested that the United States government may be looking to pass on the whole affair. Paul Cassell, an attorney, recently sent a letter to the Justice Department, noting that allowing Boeing to bypass trial, or even a guilty plea, would be considered a “miscarriage of justice” and a fraud case should be considered.

The fraud case, reports note, would be related to a key flight control system in the Boeing 737 Max, which reports suggest it “misled” the FAA about. Though it would take that aforementioned court case to determine whether or not any misleading had been done.

Is Boeing a Good Stock to Buy Right Now?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, four Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 18% rally in its share price over the past year, the average BA price target of $213.37 per share implies 4.49% upside potential.

See more BA analyst ratings

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