The process of getting aerospace company Boeing (BA) back on track, production-wise, was not a simple one. Nor was it particularly easy. A recent report from Reuters suggested that there was quite a bit going on behind the scenes, but with all that, Boeing should be back on track toward being a world-class producer of aircraft once more. Investors were willing to get in on the fray and sent shares up modestly in Thursday afternoon’s trading.
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The Reuters report notes that re-establishing production has been slow but by design. Instead of throwing themselves back into production with the fervor they had months ago—which often led to some significant problems—Boeing proved more deliberate this time around. Safety inspectors took on a new prominence, hunting with intensity for any flaws that might be missed.
Boeing’s employees, meanwhile, pored over manuals and worked to re-establish safety licenses that had expired. One employee noted that he had left early one day, as his part in the process—keeping bins of fasteners full—was largely useless as no one was using fasteners. But the fastener guy will likely be a lot busier soon, as Boeing is firing back up again. In the meantime, though, Boeing’s much more deliberate approach is winning it praise, not just from regulators but even from airline CEOs, some of whom are still waiting for orders placed months ago.
Shift at the FAA
It will surprise no one that the incoming Trump administration means a lot of former federal officials are now—or are about to be—jobless. Mike Whitaker, current head of the Federal Aviation Administration (FAA), will be no different, noted a report from NPR.
Whitaker is poised to step down on January 20, which is prompting some sad responses in Washington. Sen. Ted Cruz, for example, noted that Whitaker had been confirmed without a “no” vote on either side of the aisle, and Cruz referred to Whitaker as “apolitical” in nature. Sen. Tammy Duckworth, meanwhile, called for Whitaker’s replacement to be as stringent as Whitaker was in “…keep(ing) the flying public as safe as possible.”
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 14 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 33.2% loss in its share price over the past year, the average BA price target of $191.30 per share implies 13.92% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
