It would be easy to think that NASA has written off aerospace stock Boeing (BA) after the debacle that was Starliner, as well as the ongoing issues with the Space Launch System (SLS). But NASA and Boeing are still working together, and have revealed one big new development: a flying lab. The new project is catching some attention, and Boeing investors are pleased. They are sufficiently pleased to send Boeing shares up modestly in Tuesday afternoon’s trading.
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NASA and Boeing took a Boeing 777 from Japan Airlines (JPNRF) and converted it into said flying lab, a vehicle designed to study the Earth’s atmosphere. That job was previously handled by a DC-8, which shows you just how old the previous flying lab actually was. With the Boeing 777, meanwhile, NASA can now conduct longer flights, carry more equipment—not to mention 100 personnel—and reach areas that were previously off-limits to the DC-8.
The Boeing 777, meanwhile, needed some fairly extensive retooling to do the job. It needed cuts in the fuselage, which included expanded observation windows and openings beneath the aircraft itself. The plane’s wiring also needed an extensive overhaul.
Back for More
If you thought that Boeing lost Alaska Airlines’ (ALK) business forever after the 737 MAX debacle that started Boeing’s decline, it turns out that that is not the case. Alaska Airlines is back with Boeing, and recently adopted Boeing’s Virtual Airplane pilot training program.
The program in question gives pilots an opportunity to practice various procedures without needing a standard training environment. Better yet, it is likely to expand in the near future, as Virtual Airplane is a set of modular training tools. The procedures trainer is just the first module, so more are likely to follow and add further value to the set.
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 and one Hold assigned in the past three months, as indicated by the graphic below. After a 19% rally in its share price over the past year, the average BA price target of $274.27 per share implies 22.17% upside potential.
