What a difference a day makes! Just yesterday, we heard that aerospace stock Boeing (BA) hit yet another wall with an attempt at federal mediation in its strike with St. Louis workers. Now, we hear that a tentative deal has been reached and will go up for a full vote tomorrow. The news was received with limited fanfare from shareholders, who gave Boeing shares a fractional boost in Thursday afternoon’s trading.
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The new contract is set to run for five years, reports note, though not much is known about what is in the contract itself. Dan Gillian, Boeing Defense Vice President, noted “We’ve found a path forward on a five-year contract offer that grows wages by 45% on average. It remains the best deal we’ve ever offered to IAM 837, and we encourage our team to vote yes so we can get back to work building amazing products for our customers.”
That actually is a step up from previous contract offers, which would have increased compensation around 40% over the course of four years. Considering Boeing announced just a week ago that it was planning to hire permanent replacement workers to take over for the strikers, it becomes easy to wonder if those people no longer have jobs, or if Boeing never managed to hire anyone to begin with. After all, the security clearances alone would have taken about six months to get, reports noted.
A Hit in Singapore
Meanwhile, Boeing’s impressive run of aircraft sales is carrying on, and counted another sale to its credit. The Singapore Ministry of Defence issued a statement that it will be turning to Boeing for the P-8A Poseidon maritime patrol aircraft. Singapore will pick up four of them at first, which will replace five Fokker 50 maritime patrol aircraft it was using previously.
Singapore was also reportedly considering Airbus’ (EADSY) C-295 for the job, but apparently went with Boeing instead for reasons that were not mentioned.
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 39.78% rally in its share price over the past year, the average BA price target of $261.72 per share implies 14.98% upside potential.
