The Boeing Company (NYSE:BA) shares are trading lower today. The National Transportation Safety Board disclosed that executives from Boeing and Spirit AeroSystems Holdings, Inc. (NYSE:SPR) will testify at a hearing scheduled for Aug. 6-7 in Washington regarding the in-flight blowout on a Boeing 737-9 MAX in January.

According to the NTSB, Boeing Commercial Airplanes' Elizabeth Lund and Doug Ackerman will be among those testifying.

The NTSB also noted that Spirit AeroSystems' Terry George and Scott Grabon will testify.

Also Read: Boeing To Acquire Spirit Aerosystems For $4.7B After Months Of Negotiations

Several FAA officials are also set to testify at the 20-hour hearing over two days regarding the Boeing 737 MAX 9 door plug blowout, which involved four missing bolts, reported Reuters.

The hearing will address 737 manufacturing and inspections, safety and quality management systems, Federal Aviation Administration (FAA) oversight, and issues related to the door plug's operation.

Related: Former Boeing Inspector Says Scrap Parts Were Used In Planes For Over A Decade: Report

Recently, the FAA proposed requiring Boeing to conduct maintenance record checks or inspections of some of its 787 Dreamliners after the company reported missing a test on a part of the main landing gear.

In January, the Federal Aviation Administration (FAA) stopped Boeing's planned expansion of production of its 737 Max aircraft.

Last month, Boeing reported a revenue decline of 15% Y/Y to $16.866 billion, missing the consensus of $17.23 billion, and adjusted loss per share of $(2.90) missed the consensus of $(1.91).

In another development, Goldman Sachs analyst Noah Poponak writes that despite a turbulent 2Q24, he sees positive signs in the sustained progress on production rates (with July mirroring June's improvement) and the appointment of Kelly Ortberg as the new CEO, which could alleviate previous uncertainties affecting the stock.

Increased cash use this year for production and inventory is set to boost free cash flow in 2025, writes the analyst.

The analyst reiterated the Buy rating and lowered the price target to $232 from $242.

Also, Poponak revised 2024-2027 FCF per share estimates to $(13.22), $9.88, $14.35, and $17.40, from $(3.72), $9.68, $13.27, and $18.05, respectively, reflecting adjustments in production rates, delivery timing, working capital, and margins.

Boeing stock has lost around 30% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and First Trust Exchange-Traded Fund First Trust Indxx Aerospace & Defense ETF (NYSE:MISL).

Price Action: BA shares are down 1.79% at $166.90 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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