Boing Co (BA) said during the past weekend that load testing of its new widebody 777X jet had been suspended due to a cargo door incident during a ground stress test.
Boeing shares closed lower for the third time in the past thirteen trading sessions in New York on Monday. The stock went down 1.16% ($4.22) to $358.78, after touching an intraday low at $354.72, or a price level not seen since September 4th ($354.43).
Shares of Boeing Company have risen 11.25% so far in 2019 compared with an 18.81% gain for the benchmark index, S&P 500 (SPX).
In 2018, Boeing’s stock went up 9.36%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
A report by The Seattle Times stated that a cargo door had exploded outward during a high-pressure stress test on the ground on Thursday last week. The incident took place on a static test airplane, purposed only for ground testing, the newspaper reported.
“During final load testing on the 777X static test airplane, the team encountered an issue that required suspension of the test,” Paul Bergman, a spokesperson for Boeing Co, said in a statement, cited by Reuters.
During final load testing, jets endure loads and stresses that well exceed normal operational conditions, Bergman added.
The incident is being reviewed, the spokesperson also said.
Analyst stock price forecast and recommendation
According to CNN Money, the 20 analysts, offering 12-month forecasts regarding Boeing Company’s stock price, have a median target of $425.00, with a high estimate of $500.00 and a low estimate of $367.00. The median estimate represents an 18.46% upside compared to the closing price of $358.78 on September 9th.
The same media also reported that at least 12 out of 23 surveyed investment analysts had rated Boeing Company’s stock as “Buy”, while 9 – as “Hold”.