On Monday, BofA Securities maintained a Neutral position on shares of Boeing (NYSE:BA) with a steady price target of $200.00. The aerospace company's Starliner capsule, which had been used to transport astronauts to the International Space Station (ISS), will not be used to bring them back due to a series of technical problems. NASA has chosen to use a SpaceX capsule for the return journey in 2025.
The Starliner encountered multiple technical challenges, including leaking helium and failed thrusters. These issues have led to NASA's decision to leave the capsule unmanned upon its return to Earth. The two astronauts who arrived at the ISS aboard the Starliner will instead return on a SpaceX vehicle, as confirmed by NASA on August 24, 2024.
NASA's press conference outlined that the SpaceX capsule was already scheduled for a mission to the ISS the following month. Adjusting this trip to facilitate the astronauts' return was deemed the easiest and most efficient solution. The agency emphasized this approach as being the safest for all parties involved.
Boeing's Starliner has been a significant part of NASA's Commercial Crew Program, which aims to facilitate transportation to the ISS by US spacecraft. The recent technical setbacks with the Starliner represent a hurdle for Boeing in this competitive space sector.
The unchanged stock price target by BofA Securities reflects the ongoing situation with Boeing's space endeavors. The company's stock rating remains neutral, indicating that the financial institution does not foresee a significant change in the company's stock value in the near term, in light of the current developments.
In other recent news, TD Cowen has maintained a Buy rating for Boeing, despite upcoming labor negotiations and potential disruptions in the aerospace industry. The analyst from TD Cowen also noted an opportunity for Boeing to enhance its cash flow for the years 2025-2026 if contract negotiations are resolved amicably.
In response to a mid-air dive incident, the U.S. Federal Aviation Administration (FAA) has mandated inspections for Boeing 787 Dreamliner aircraft. This directive affects 158 U.S. registered and 737 global airplanes, requiring inspections of the captain’s and first officer’s seats within 30 days.
Moreover, Saudi Arabia's Public Investment Fund is reportedly in discussions with Boeing and Airbus to acquire jets for a new cargo airline initiative, though the specifics of the potential deal remain undisclosed. These are some of the recent developments in Boeing's journey.
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