Analysts Analyze Implications of NASA Starliner Decision for Boeing By Investing.com

NASA’s recent decision to bring Boeing’s (NYSE: ) Starliner spacecraft back to Earth without its astronaut crew has raised concerns about the company’s space program.

The two astronauts, who will now return aboard SpaceX’s Dragon capsule, were originally scheduled to return on the Starliner.

Analysts believe that this decision could have significant implications for Boeing.

Wolfe Research notes that NASA’s decision will likely result in additional financial charges for Boeing, estimating potential losses between $200-300 million. However, Wolfe argues that the setback does not change the medium-term stock outlook for Boeing.

JPMorgan points out that the decision was driven by safety concerns, particularly persistent problems with the Starliner thrusters. These safety concerns led NASA to opt for the Dragon capsule, which has a more reliable track record.

Analysts suggest that these ongoing problems with the Starliner could further exacerbate Boeing’s financial losses in its space division.

Bank of America points out the wider implications of the decision. Analysts point out that the Starliner has faced numerous challenges since its inception, including multiple delays and technical failures.

They express concern that this latest failure could damage Boeing’s reputation with NASA, possibly affecting future contracts.

Bank of America’s team even suggests that Boeing may have to consider divesting its manned space flight business, given the ongoing challenges and potential reputational damage.

While the decision to return the Starliner without a crew is seen as a prudent safety measure, it casts a shadow over Boeing’s future in space exploration, adding to the company’s existing operational and financial challenges.