This should have been much better news for aerospace stock Boeing (BA) than it actually was. Boeing managed to bring in a pretty substantial win from the Federal Aviation Administration (FAA) that will let Boeing get product out the door a little faster than before. Despite this win, Boeing stock was still down nearly 3% in Monday afternoon’s trading.
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Starting today, September 29, the FAA will be dialing back the restrictions on Boeing’s ability to issue airworthiness certificates. Now, Boeing will be able to alternate its weekly certification duties, reports note, which will in turn step up its production and delivery schedules. Boeing had been operating under an environment of “heightened oversight” for years, and this is the first major sign that Boeing may be back on track after all.
This should be welcome news, especially in light of the sheer number of new orders that Boeing has landed in the last few weeks. With President Trump on a tear, and countries placing big Boeing orders to help balance trade deficits, this means big things for Boeing, as long as it can actually fill the orders in question.
Wrongful Death Settlement
Some of you might remember the story of John Barnett, a whistleblower at Boeing who last year committed suicide. Boeing was sued in the wake of that incident, and now, reports note that Boeing has agreed to pay $50,000 to settle the lawsuit filed against it by Barnett’s surviving family.
Nearly half of that—about $20,000—will go to pay legal fees and costs surrounding the case. The rest of the payment will go to the plaintiffs directly. Boeing, for its part, not only denies, but “…continues to deny that any act or omission on its part…” had anything to do with Barnett’s death or injury. Boeing also noted in a statement: “We are saddened by Mr. Barnett’s death and extend our condolences to his family as we reach this resolution. Boeing took actions several years ago to review and address the issues that Mr. Barnett raised.”
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 16 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 45.53% rally in its share price over the past year, the average BA price target of $260.73 per share implies 20.91% upside potential.
