We all remember last September, when workers at aerospace stock Boeing (BA) walked off the job to go on strike. And now, just one year later, another strike is in progress as the St. Louis arm of Boeing operations is on strike. And there are mounting questions that Boeing leadership is left to face down as the strike continues. Investors, meanwhile, were not happy, and Boeing shares lost ground fractionally in Thursday afternoon’s trading.
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Apparently, there is a substantial discrepancy between Boeing operations in Seattle, and Boeing operations in St. Louis. Matthew Paronish described it as being “…kind of like the stepchild of Boeing” More specifically, Paronish detailed that St. Louis’ 401(k) was worse than the Seattle equivalent, as well as vacation time and time to progress to the top of the pay scale. Paronish summed it up by noting, “We’re always treated as second rate despite doing first-class work.”.
Meanwhile, Dan Gillian—vice president and general manager of air dominance at Boeing—noted, “To understand what our offer means to them and their families. An average of 40% wage growth across the four years, more vacation time, more sick time, and 33% faster through progression from the bottom of the pay scale to the top. And if accepted, our offer over the next four years would move the amount of people at max rates by more than double.”
Boeing Braces for ITEP Cancellation
Meanwhile, Boeing is bracing for a major potential change in one of its biggest military clients’ operations. The United States Army is considering canceling the Improved Turbine Engine Program (ITEP). That leaves Boeing moving to find a next-generation version of the Apache AH-64F aircraft, which it is reportedly starting to design.
Early word about the new version suggests that it will weigh less, and also use a “…composite designed fuselage.” This would allow the new version to be operational until as late as 2070, noted the director of attack helicopter programs at Boeing, Terry Jamison.
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 17 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 43.31% rally in its share price over the past year, the average BA price target of $261.24 per share implies 13.12% upside potential.
