On Friday, the Federal Aviation Administration said that Boeing (NYSE: BA) has temporarily halted deliveries of the 787 Dreamliners as the agency waits for more data to determine if the planemaker’s inspection method meets federal requirements.
The FAA said in a statement Friday:
“Boeing still needs to show that its proposed inspection method would meet FAA’s federal safety regulations. The FAA is waiting for additional data from Boeing before determining whether the company’s solution meets safety regulations. Since the FAA has not approved Boeing’s proposal, Boeing chose to temporarily stop deliveries to its customers.”
As a result, the Boeing stock was down about 1.5% by press time. Still, the aviation giant’s shares remain resilient, posting a 15.4% gain in 2021 Year-to-Date.
Increasing interest in travel fuels the stock’s growth
Despite a turbulent 2020, in 2021, Boeing stock is still posting positive gains amid eased traveling restrictions.
Moreover, more than 60% of adults in the United States have received at least one dose of the covid vaccine, while states and countries are easing lockdowns and allowing travel again, all of which will help Boeing recover its losses from the pandemic and the 737 MAX grounding.
As Finbold.com previously reported, Boeing President and Chief Executive Officer Dave Calhoun project three years for recovery.
Boeing stock’s price outlook
Boeing stock has received support from multiple analysts at Morgan Stanley and others. In addition, analysts have a mean target price of $257 per share, higher than the current price of around $247. Additionally, analysts estimate Boeing to post $19 billion in Q2 sales, a 62% Year-on-Year growth.
Elsewhere, the Wall Street analysts project the average price target for Boeing stock of $270 in the next 12 months, representing a 9.3% upside over the current price with the highest forecast being $310, while the lowest – $229.
Out of 14 analysts, 7 offer a ‘Buy’ rating consensus, while 7 offer a ‘Hold’ rating. Interestingly, no one suggested the Boeing stock as a ‘Sell’ rating consensus.
Going forward, as long as commercial travel returns to pre-pandemic levels, investors aren’t likely to worry about a minor delay with the 787 Dreamliner.