Boeing (BA) shares are down again on Friday after dropping nearly 5% the day before, as reports suggest that India’s government will likely ground its Dreamliner 787-8 fleet for a safety review. This comes after one of its planes, operated by Air India, crashed shortly after takeoff, leading to the death of more than 240 people. Air India, which has been attempting to rebuild its reputation, will also face scrutiny over its aircraft maintenance procedures, despite having no recent crash history.
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Investigators are focusing on whether a possible loss or reduction of engine thrust played a role in the crash, though many details remain unclear. However, CNN reported that neither a bird strike nor overloading was responsible. At the same time, India’s civil aviation minister confirmed that at least one of the plane’s black boxes has been recovered, which should help investigators better understand what happened.
Unsurprisingly, the incident is already impacting the industry. Indeed, Boeing CEO Kelly Ortberg canceled his trip to next week’s Paris Airshow, while GE Aerospace (GE), which makes the plane’s engines, postponed its planned Investor Day. In the U.S., Transportation Secretary Sean Duffy and Acting FAA head Chris Rocheleau stated that they have seen no current data that suggests there is a need to ground 787 flights domestically. Nevertheless, U.S. officials, along with Boeing and GE representatives, will send a team to India to assist with the investigation.
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, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average BA price target of $220.95 per share implies 9.5% upside potential.
