Today’s news was a bit of a mixed bag for aerospace company Boeing (BA), as it saw both analyst concerns rising and some corporate issues getting involved against the backdrop of an ongoing strike.
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Analyst Stephen Guilfoyle suggests that Boeing is likely to continue to suffer going forward. A litany of mechanical failures—we just saw another set of those crop up in yesterday’s news—is not helping to inspire confidence in the iconic American brand.
Boeing’s debt load is also substantial, and quite a bit of it is coming due. At last report, Boeing had $52.904 billion of debt, with $4.765 billion of it coming due in the next year. Worse, Boeing also has accounts payable of $11.864 billion, and another $8.407 billion on top of that connected to its pension. With the strike flatlining its production, and the Federal Aviation Administration production caps still in effect, it is easy to see why Boeing is considering a stock sale to raise cash.
Boeing’s Corporate Relations
Meanwhile, there was good news and bad for Boeing connected to other companies. For instance, it settled a lawsuit with Virgin Galactic (SPCE). Boeing was supposed to work on Virgin Galactic’s space tourism operations designing a new mothership. Boeing pointed out that actually building the thing would take longer and cost more than expected, and Boeing in turn accused Virgin of stealing trade secrets. Virgin, meanwhile, accused Boeing of shoddy work and sought damages accordingly.
However, on the downside, LCC Norwegian is considering some other options as Boeing production delays look to carry on with no real end in sight to its workers strike. Delays that were already in place are even worse now, thanks to the strike, and that is prompting airlines to look for alternatives.
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 15 Buys, four Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 18.48% loss in its share price over the past year, the average BA price target of $206.11 per share implies 34.92% upside potential.
