So we found out, not so long ago, that the way forward for aerospace stock Boeing (BA) involved tabletop gaming and simulations from the Federal Aviation Administration (FAA) that, themselves, would not be ready to even start until the end of September. And with that, the FAA also noted that no clear decisions have been made about increasing Boeing’s production cap. The news came as a blow to shareholders, who sent shares down fractionally in Tuesday afternoon’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bryan Bedford, an administrator with the FAA, spilled the tea on Boeing’s current status with the production cap. He said, “Progress is being made. It may not be as fast perhaps as Boeing would like but it is as fast as we can reasonably move through the process.” Bedford noted that the progress seen has been encouraging, but there is still, apparently, more data that needs to be provided in order to answer several questions.
It can be hard to see that progress, of course, when it functionally changes nothing despite the cap being in place for nearly two years now. What else can they possibly need to see? Bedford answered that rhetorical question by saying, “This is going to be a bottom-up process—front-line FAA team that’s really on them to make the recommendation of whether they feel like we’ve reached some of the milestones that would warrant any kind of change. None of those recommendations have come up yet. That tells me the work is still ongoing.”
Aerial Refueled Drones
That was not great news for Boeing, but something a little more encouraging did get out. Specifically, it is about the MQ-28 Ghost Bat, the drone aircraft designed to be a “wingman” unit for fighters. A new version recently emerged offers a novel new feature: mid-air refueling capabilities. A model was seen with a receptacle on its fuselage that would let a flying tanker refuel the aircraft.
The move comes with trade-offs. While the refueling capability would allow the Ghost Bat to extend its operations time, as well as its potential reach, it would also make each model more expensive. Still, with the potential versatility of the Ghost Bat, a little extra expense might not faze many potential buyers.
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 18 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 44.28% rally in its share price over the past year, the average BA price target of $261.72 per share implies 13.87% upside potential.
