Boeing's (NYSE:BA) Design Changes on 787 Going Well

After the fire on a 787 connected to the power distribution panels caused concern over the future of the panels for Boeing (NYSE:BA), as it wasn't immediately known whether or not it was going to result in a major redesign or only needed to be tweaked.

That has been resolved, as the company recently announced they would only need to make some minor changes to the panels in response to the fire, which was caused by a short circuit in one of the power distribution panels. The short circuit was the result of foreign debris lodging in the panel.

One change being made is with the software which will have improvements made to increase fault protection. Boeing says the all the minor changes are proceeding well.

Jefferies said they are in agreement with the conclusions of Boeing, and see positive things going forward for the company. They maintain their "Buy" rating on them, along with their 2010,11,12 earnings per share estimates of $3.90, $5.00, and $6.00, while raising their price target.

Boeing closed Friday at $64.80, falling $0.61, or 0.93 percent. Jefferies has a price target of $80 on them.

Boeing (NYSE:BA) 787 Delay from 3-6 Months Says Gleacher

Consensus on Boeing (NYSE:BA) is the problem with their 787 is a P100 control panel is a failure/installation issue and not an architecture/hardware issue, which would have been a game-changer.

Gleacher noted that as a result of that confirmation, they see a delay of from 3-6 months for the 787.

Gleacher said, "Industry checks continue to point to a component failure/installation issue with the P100 control panel on the 787. This is in-line with our previous checks and is NOT a system

architecture/hardware issue. Nonetheless, we still expect a delay, most likely 3-6 months in total, which would slide certification into late 2Q11 or early 3Q11. If the latter proved to be true, this would be about two months longer than our previous estimates, though certification would still occur in the summer of 2011.

"We continue to estimate BA will have roughly $8.00 per share in earnings power by 2014, almost entirely from non-787 aircraft (i.e., very little 787 contribution). A delay of 6 months or less is baked into the BA stock as there has been a lot of speculation of a 9+-month delay. Despite the upcoming 787 schedule change, we believe the core business still supports an entry point level in low-$60s."

Gleacher reiterated a "Buy" on Boeing, which closed Monday at $64.03, gaining $0.44, or 0.69 percent. They have a price target of $100 on them.