“Hazardous Substances in the Lower Duwamish”: Boeing Stock (NYSE:BA) Notches Up Despite Lawsuit

It is not every day that aerospace stock Boeing BA +0.89% ▲ finds itself on the bad end of a lawsuit related to environmental practices. That was just what happened recently, though, as the federal government took aim at Boeing, and a group of others, over the discovery of “…hazardous substances in the Lower Duwamish.” Oddly, investors were much less afraid of this than might be expected, as shares gained nearly 1.5% in Wednesday afternoon’s trading.

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The United States government, backed up by the state of Washington, took aim at Boeing, as well as the City of Seattle, King County, and several other unnamed entities measured in the dozens. The lawsuit filed focused on issues in the Lower Duwamish Waterway Superfund Site, and the cleanup costs the governments incurred as a result.

The governments involved want a court to hold the various defendants liable for the costs as part of the Comprehensive Environmental Response, Compensation, and Liability Act as well as Washington’s own Model Toxics Control Act. The area has been “…Seattle’s major industrial corridor since the early 1900s,” which makes for a lot of unpleasant matter slipping into the area. The EPA found 41 different substances in the area, from arsenic to dioxins, among others.

The Starliner Debacle Continues

Further, new reports emerged about the Starliner debacle, and how issues of culture actually impacted Boeing’s ability to safely get its astronauts home. The formal declaration of a “Type A mishap” did not help matters, and further reports that “leadership accountability” would follow as NASA itself planned to work with Boeing on “corrective actions.”

Reports detailed “communication breakdowns” and “unprofessional behavior” during the event, as Boeing and NASA experienced “disputes” on how to bring the crew back home, safely. There were also descriptions of “…strained decision-making dynamics and leadership failures…” involved as well, which is a serious problem for an operation that is departing the planet.

Is Boeing a Good Stock to Buy Right Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 13 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 37.36% rally in its share price over the past year, the average BA price target of $278.17 per share implies 22.8% upside potential.

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