So it looks like aerospace stock Boeing (BA) will be going into yet another September with a strike on its hands, as the latest round of talks have stalled out. New talks will not start until “…at least after Labor Day,” reports note. Investors seemed pleased about this, and gave Boeing shares a fractional boost in Wednesday afternoon’s trading.
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This news came not long after word of the Korean Air deal emerged that represented a huge sale for Boeing. And that huge deal apparently gave Boeing all the confidence it needed to shut down negotiations in its defense operations.
Interestingly, reports note, Boeing’s latest offer was fundamentally unchanged from its last offer, along with, as we heard earlier, the removal of a ratification bonus that came with a time stamp that had since passed. The International Association of Machinists offered a statement noting that there was “…no progress made today, and we’re hoping to meet more during the week.” But Boeing itself does not seem to have plans to come back until at least Tuesday of next week, after the Labor Day holiday.
The Shadow Factory is Done
We also remember how Boeing used to have a “shadow factory,” as it was called, operating in the background. But that operation is no longer running, as the last 737 MAX stored at the facility was flown out the doors.
Many of the factors that contributed to the shadow factory’s existence, like COVID-19, have since been resolved. And with Boeing itself running a complete cultural revamping, Boeing is now much more focused on getting planes out the door than it is building stockpiles at locations with vaguely sinister names.
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 18 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 37.56% rally in its share price over the past year, the average BA price target of $258.17 per share implies 9.91% upside potential.
