Aerospace stock Boeing (BA) is still having labor troubles, and the union in St. Louis is getting its own counter-proposal around for Boeing to consider. If this goes through, it will be the end of the strike. But will Boeing actually take the bait? Investors seem a bit skeptical, as shares have slipped fractionally in Tuesday afternoon’s trading.
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Word from the IAM Union District 837 Negotiating Committee says that union membership will be offered the chance to vote on a new four-year contract proposed by the union itself. If the membership takes the offer, then it will be submitted to Boeing as a “pre-ratified” agreement. Thus, all Boeing will need to do is accept the offer to bring the strike to an end.
The new offer calls for improved 401(k) contributions that are “…in line with other Boeing employees,” as well as pay raises for the top-of-scale workers. A ratification bonus is also included, which is said to be “…comparable to other union and non-union workers at Boeing.” The vote on ratifying this agreement will take place this Friday, September 19.
Farewell to Thee, 757, Hello 777X
So yesterday, we talked about how German airline Condor was phasing out the 757. This actually came at an interesting time, because video of Boeing’s 777X cabin is actually going viral. Boeing recently confirmed the video was authentic, and the early results are certainly eye-catching.
For instance, thanks to some changes in how production takes place, the 777X has a wider cabin than the 777 twinjets running today. It may only be about four inches wider, but that extra room is offering a whole new layout. Plus, with dimmable windows and new mood lighting choices, the 777X can offer up a range of experiences to go along with time of day or anything like that. In fact, some even suggest that this may be the only good news about Boeing taking so long to roll out the 777X: anticipation has built to a fever pitch, and should fuel sales.
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 one Hold assigned in the past three months, as indicated by the graphic below. After a 37.96% rally in its share price over the past year, the average BA price target of $261.72 per share implies 21.99% upside potential.
