The U.S. Military can stop fireplace hazards that this week led to made by Boeing (NYSE:), and as a substitute is discovered within the T55 engines made by Honeywell ().of its CH-47 Chinook helicopters, Financial institution of America stated in a analysis notice on Wednesday. The hazard isn’t associated to the airframes
Greater than 70 of the helicopters have the element that’s believed to be the supply of the hearth hazard, the Wall Road Journal. The Military has about 400 Chinook helicopters in its fleet.
The reliability of the Chinook means that the hearth hazard will be mounted, Financial institution of America analyst Ronald Epstein stated within the report. Greater than 6,000 T55 engines are in navy and industrial service worldwide. Collectively, they’ve racked up greater than 12 million hours of flight time.
Honeywell () stated it’s working with the Military to repair elements often called O-rings that didn’t meet the corporate’s specs.
“Not one of the questionable O-rings originated or had been a part of any Honeywell manufacturing or Honeywell-overhauled engines,” Honeywell stated.
Financial institution of America maintained its Impartial ranking on Boeing (). Boeing has declined 22% this 12 months, in contrast with a 17% slide for the S&P 500 Inventory Index ( ).
Looking for Alpha contributor Dhierin Bechai has a Purchase ranking on Boeing () on the likelihood for a longer-term enchancment in . Contributor JR Analysis charges Boeing as a Maintain on its .