While official word about just what happened in the Air India crash is likely not due for some time, aerospace stock Boeing (BA) now finds itself embroiled therein. Yet, this latest legal problem for Boeing is proving not particularly troublesome, as Boeing shares managed to tick up slightly in Thursday afternoon’s trading.
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Four of the victims’ families on board Air India Flight 171 launched a lawsuit in Delaware Superior Court, more specifically, a “product defect and negligence” lawsuit. The lawsuit claims that the June disaster was caused by a “defective fuel cutoff switch,” which in turn led to the disaster. The suit also noted that flight data showed that an Air India pilot accidentally shut off fuel to the engines on the 787-8 Dreamliner in question which meant a complete loss of thrust.
The switch, manufactured by Honeywell (HON), was installed by Boeing, and did come with a locking mechanism designed to prevent such accidents. However, the suit also noted, the switch was placed in a “high traffic” area, next to thrust levers that pilots constantly manipulate. So Boeing and Honeywell both, apparently, should have known that accidentally turning off that locking mechanism would be an easy thing to do.
The Ghost Bat is Up and Running
Meanwhile, Boeing also showed off the MQ-28, otherwise known as the Ghost Bat, in recent demonstrations. Those demonstrations, Boeing notes, prove its “operational viability,” reports note, thanks in large part to how quickly the demonstrations actually went through.
The Ghost Bat took on several “operationally relevant missions,” reports noted, which proved its worth. MQ-28 global program director Glen Ferguson noted that, thanks to the speed with which these trials took place, Boeing could move into the Ghost Bat’s next few phases of development, including “…an air-to-air weapon shot planned for later this year or in early 2026.”
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 17 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 38.84% rally in its share price over the past year, the average BA price target of $262.88 per share implies 22.51% upside potential.
