NASA’s recent decision to return Boeing’s (NYSE:) Starliner spacecraft to Earth without an 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 aboard the Starliner.
Analysts believe the decision could have major implications for Boeing.
Wolf Research Wolf notes that NASA’s decision is likely to result in additional financial charges for Boeing, with potential losses estimated at $200 million to $300 million. However, Wolf stresses that this setback does not change Boeing’s medium-term stock outlook.
JPMorgan The report says the decision was made due to safety concerns, particularly ongoing issues with Starliner’s thrusters. These safety concerns prompted NASA to opt for the Dragon capsule, which has a more reliable track record.
Analysts point out that these ongoing problems with Starliner could exacerbate the financial losses Boeing is incurring in its space division.
Bank of America The decision underscores the broader implications of the decision. Analysts point out that the Starliner project has faced numerous challenges since its inception, including multiple delays and technical glitches.
They expressed concern that this latest setback could damage Boeing’s reputation with NASA, potentially affecting future contracts.
The Bank of America team suggests that Boeing may need to consider divesting from its human spaceflight business, given the ongoing challenges and potential damage to its reputation.
While the decision to return the uncrewed Starliner is seen as a wise safety measure, it casts a shadow over Boeing’s future in space exploration, adding to the company’s current operational and financial challenges.