Boeing (BA) 787 Dreamliner Deemed Safe By FAA Review

NEW YORK (TheStreet) -- Boeing's (BA) design for the 787 is safe and "fundamentally sound" according to a report from the Federal Aviation Administration.

Shares of Boeing were falling 1.8% to $121.82 Wednesday.

The FAA conducted a yearlong review of the aircraft after a lithium-ion battery inside a parked 787 caught fire in Login International Airport in Boston in January 2013. Another 787 battery failed less than two weeks later. The 787 is the first airliner to extensively use lithium-ion batteries.

The report found that the global fleet's reliability in the 787's first 16 months was comparable to previous new models from Boeing.

Despite the findings, the report still recommends that Boeing makes sure suppliers are "gully aware of their responsibilities," and that they "identify realistic program risk." The report also says the FAA has to increase oversight of foreign and "high-risk" subcontractor facilities.

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TheStreet Ratings team rates BOEING CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BOEING CO (BA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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