Boeing (BA) Flags Structural Failures Linked to UPS Crash Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Structural Failure Warning: Boeing (BA) issued a service notice in 2011 alerting MD-11 operators to multiple failures of a spherical bearing, a critical component designed to absorb stress and vibration in the engine mounting system, indicating potential safety risks.
- Investigation Progress: The National Transportation Safety Board is examining how Boeing (BA) reflected inspection recommendations in maintenance manuals and how UPS (UPS) implemented them, highlighting the importance of aviation safety protocols.
- FAA Intervention: Following the crash, the FAA temporarily grounded MD-11F cargo aircraft, mandating inspections and corrective actions, demonstrating heightened safety scrutiny for aircraft with similar engine-pylon designs.
- Accident Consequences: Preliminary investigations revealed fatigue cracking in several engine-mount structures on the MD-11F, leading to the loss of the left engine shortly after takeoff and the subsequent crash, resulting in fatalities, underscoring the need for rigorous safety reviews of aging aircraft.
Analyst Views on BA
Wall Street analysts forecast BA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BA is 249.07 USD with a low forecast of 150.00 USD and a high forecast of 285.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
13 Buy
2 Hold
1 Sell
Strong Buy
Current: 244.550
Low
150.00
Averages
249.07
High
285.00
Current: 244.550
Low
150.00
Averages
249.07
High
285.00
About BA
The Boeing Company is an aerospace company. Its segments include Commercial Airplanes (BCA), Defense, Space & Security (BDS), and Global Services (BGS). Its BCA segment develops, produces and markets commercial jet aircraft principally for the commercial airline industry worldwide. Its family of commercial jet aircraft in production includes the 737 narrow-body model and the 767, 777 and 787 wide-body models. Its BDS segment is engaged in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility. Its BGS segment provides services to its commercial and defense customers worldwide. It sustains aerospace platforms and systems with a range of products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
