Brian Yutko, the new Vice President of Product Development at Boeing Commercial Airplanes, has big plans for how new products will be developed. Said development will be driven by “…dramatic leaps in efficiency and greater autonomy,” reports note. Investors, meanwhile, gave aerospace stock Boeing (BA) a little extra push with that news, sending shares up fractionally in Thursday afternoon’s trading.
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Yutko wants to get not only improved efficiency into airliner design, but also greater autonomy. Basically, Yutko noted, there would be a whole host of new planes coming out over the next 25 years that do not currently exist. And, Yutko noted, “Those aircraft will certainly be dramatically more efficient than today’s most efficient airplanes.”
Yutko is likely not wrong there; even casual comparisons between the most efficient aircraft of today and those released in the year 2000 represent night-and-day differences as well. But Yutko was more specific from there. One point he called attention to was sustainability, how the aircraft is powered, and fueled. The other was automation, whether for “…safety enhancements on crewed airplanes, or autonomy for flying uncrewed airplanes….”
Fuel Venting Problems
But then, there was another, more immediate problem for Boeing, thanks to issues with the F-15EX Eagle II fighter aircraft. Reports note that a “fuel venting issue” has emerged, and left several aircraft grounded. However, Boeing is working on several potential fixes for the issue, and will hopefully have it addressed soon.
So far, Boeing has delivered nine such jets, out of a planned fleet of 129. This is not welcome news, as the fuel venting issue has emerged so early in the fulfillment process. A Boeing rep explained, “Fuel venting occurs when fuel overflows from the tanks inside the aircraft and, by design, then flows overboard through special ports near the tips of the wings on the F-15. It occurs occasionally on various aircraft, including all F-15 models.” And in this case, the aircraft involved are venting fuel at a higher rate than normal. It is not a problem Boeing needs right now, particularly with St. Louis on strike. But hopefully it is a matter that can be fixed readily.
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 19 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 33.26% rally in its share price over the past year, the average BA price target of $257.21 per share implies 14.07% upside potential.
