Honestly, I am just as amazed as you no doubt are right now. After weeks of strikes and layoffs, there is one factory for aerospace stock Boeing (BA) that is not experiencing layoffs. Rather, that factory is looking to hire. And this news gave shares a fractional boost in Tuesday afternoon’s trading.
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A Quartz report noted that the South Carolina 787 Dreamliner factory has not only kept its employees in full operation, but it is also looking to hire. In fact, Boeing is looking to sink $1 billion into the plant, which means about 500 new jobs will be coming in.
Perhaps the most interesting twist here is that the South Carolina plant is not a union shop. Thus, it has no real concern about contracts or anything similar. And according to Boeing’s Scott Stocker, who leads 787 production, the move “…reflects Boeing’s commitment to the workforce, the 787 program, and the community.” But the International Association of Machinists and Aerospace Workers is taking a bit of credit here as well, asserting that the non-union shop gained a “…9% standard wage increase and a $12,000 retention bonus” as a result of its work.
Bumping the Competition
It is clear that Boeing needs to do something here. A report from Barron’s points out that Airbus (EADSY) recently landed an upgrade at Deutsche Bank. Analyst Christophe Menard hiked Airbus shares from Hold to Buy, and raised the price target from $163 to $194, the report noted. As for reasons, Menard pointed out that, while supply chain issues have hit both companies hard in recent months, Airbus’ better overall deliveries suggests that “…Airbus has better control over its supply chain.”
But for those with an interest in flying a 787-9 Dreamliner, a new report from FSELITE notes that you can…in Microsoft (MSFT) Flight Simulator. Now, simulated pilots will be able to fly the 787-9 in addition to the 787-8 and the 787-10 that have emerged previously.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 12 Buys, seven Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 33.38% loss in its share price over the past year, the average BA price target of $189.41 per share implies 9.15% upside potential.
