Aerospace stock Boeing (BA) might be one of the biggest companies the United States has. One of the only two companies that handles commercial aircraft at any real scale, and a major supplier of national defense tools, the United States clearly counts on Boeing. But is America perhaps too reliant on Boeing? That is the question some ask. Investors did not seem to care, though, as shares tipped up fractionally in Friday afternoon’s trading.
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The recent Boeing strike underscored the point, reports noted, with a strike putting delays in a recently-secured $20 billion contract to build the F-47 jet. Of course, it is worth noting that those delays were likely to happen, strike or no, as there has been a supply issue involved in getting the necessary engines for the F-47. But that point is not stopping some from suggesting that, perhaps, Trump himself should be taking more of a hand in the Boeing strike to get the workers back to work.
This could be true, though given that the strike is only about two weeks old right now, it is possible that Trump might prefer to let businesses regulate their own issues instead of jumping in to exert pressure right away. But with Boeing currently the fourth-largest Department of Defense contractor, holding Boeing to a different standard could make some sense.
The Unpleasant $81 Million Surprise
While some are wondering if Boeing and its internal affairs are a national security risk, another point slipped in on Boeing: an $81 million award against Boeing from a court case about trade secrets theft. A United States appeals court reinstated the award against Boeing in favor of Zunum Aero, a startup that handles electric aircraft.
Originally, a California judge threw out the jury verdict of $81 million for Boeing. But the 9th U.S. Circuit Court of Appeals stepped in to put the award back, rejecting the original judge’s assertion that the information that Boeing took was not, at the time, subject to trade secret protection. Boeing’s next move from here, meanwhile, is unclear.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 19 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 29.56% rally in its share price over the past year, the average BA price target of $257.05 per share implies 9.14% upside potential.
