Boeing says it discovered a new defect in 787 Dreamliner

Shares of Boeing Co (NYSE: BA) took a hit late on Tuesday after the aerospace giant said it had discovered a new defect in its 787 Dreamliner.

Boeing expects a delay in Dreamliner deliveries

The multinational also warned that there will be a delay in deliveries of the wide-body aircraft as it works on a fix. Its statement reads:

We’re inspecting 787s in our inventory for a nonconforming condition related to a fitting on the horizontal stabiliser. Airplanes found to have a nonconforming condition will be reworked prior to delivery.

Earlier this year, Boeing had to pause deliveries of its 787 planes due to a problem with a fuselage component. Still, it delivered 130 airliners in the first quarter – more than 127 than rival Airbus did.

Boeing stock is up nearly 5.0% for the year at writing.

Boeing did not lower its full-year deliveries outlook

Boeing confirmed, though, that the issue it disclosed today had nothing to do with flight safety. Its 787 Dreamliners in service, therefore, will continue operating as is.

Also a positive for investors was that the management did not lower its full-year guidance for deliveries due to the new defect. The Arlington-headquartered firm expects to deliver up 70 to 80 Dreamliners this year.

A day earlier, Bernstein analysts named Boeing stock a top pick in aerospace and defense. Their outperform rating on the aeroplane manufacturer comes with a price target of $252 that suggests close to a 25% upside from here.

Boeing expects between $3.0 billion an $5.0 billion in free cash flow this year (find out more).