Air carriers that operate Boeing 737 NG aircraft will have to inspect them for ”structural cracks”, the US Federal Aviation Administration said.
The inspections will focus on the jets’ pickle forks, or parts which connect the wings to the fuselage, the FAA said.
Boeing shares closed higher for the fourth time in the past eleven trading sessions in New York on Thursday. It has also been the sharpest daily surge since September 17th. The stock went up 1.28% ($4.71) to $372.07, after touching an intraday low at $363.31, or a price level not seen since September 10th ($358.55).
Shares of Boeing Company have risen 15.37% so far in 2019 compared with a 16.11% 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.
The agency’s order followed a review that had found cracks on some aircraft in China.
1 911 jets in the United States will be affected by the FAA’s order, while 165 of these planes will have to be inspected within a week. The inspection of every plane is to take approximately 1 hour, the agency 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 $429.50, with a high estimate of $500.00 and a low estimate of $367.00. The median estimate represents a 15.44% upside compared to the closing price of $372.07 on October 3rd.
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”.