Clarity on Boeing (NYSE:BA) 787 Incident Emerges

Concerns were high when Boeing (NYSE:BA) had an electric fire on a 787 which some though could result in the need for a complete re-design.

Further clarity seems to imply that won't be the case.

"Yesterday (Tuesday), BA provided a further update on the 787 incident from November 9 in Laredo, TX involving L/N2. The update provided some key facts about the event but did still not give an absolute conclusion as to why the electrical fire happened in the aft electronic bay involving the P100 power control panel. However, a key point in the latest release is that seeing as the back-up systems deployed correctly, the aircraft could have flown "as is" in a typical 787 mission profile (i.e., middle of the Pacific) and return to an airport suitable for landing (the 787 Extended-range Twin-engine Operational Performance Standards [ETOPS] target is 3-4 hours). That indicates that the incident was very much contained and the aircraft could perform as expected. We continue to believe this incident will not result in major system re-designs," said Gleacher and company.

Boeing closed Wednesday at $62.50, losing $0.28, or 0.45 percent. Gleacher has a price target of $100 on them.