Aerospace stock Boeing (BA) has been fending off a strike at its St. Louis operations for some time now, and it is not going well overall. Boeing recently released word about the status of the strikes, and the International Association of Machinists and Aerospace Workers (IAM) responded accordingly. The IAM’s statement suggests there are bigger problems at hand, and this may start cutting into Boeing’s military projects. Investors were not particularly concerned, however, as evidenced by a fractional gain in Boeing shares in Friday afternoon’s trading.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
We know that the union has already filed a complaint with the National Labor Relations Board about Boeing’s seeming refusal to negotiate in good faith. But the IAM amplified that somewhat with today’s remarks.
The IAM said, “While Boeing claims we’ve been engaged in mediation ‘for several weeks,’ that’s simply misleading. The last time we met with the company and the federal mediator was on Sept. 29. Since then, there have been no further mediation sessions. Following that meeting, the union submitted a modified version of our pre-ratification settlement offer through the Federal Mediation and Conciliation Service (FMCS). Boeing rejected that proposal and instead re-issued the same five-year contract offer that had already been rejected by our membership. They made that same rejected offer contingent on acceptance by a specific deadline, but because it had previously been voted down, it was not brought back for another vote.”
The New Boeings at Southwest
On a brighter note, Southwest (LUV) recently revealed its new 737 MAX 8, which was part of its “fleet modernization” plans. This plane is surprisingly full of options, and should deliver a quality experience for passengers of all sorts. First, each seat has its own power, complete with both USB-A and USB-C ports.
That by itself is a good start, but it gets better. The new planes also have RECARO R2 BL3710 seats with adjustable headrest cushions and backrests with lumbar support. There are even new, larger bins for carry-on bags, which is particularly useful as Southwest recently started charging for checked bags.
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 14 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 36.7% rally in its share price over the past year, the average BA price target of $259.08 per share implies 21.17% upside potential.
