Aerospace stock Boeing (BA) has been hit repeatedly of late with plenty of bad news. Today proved little exception. A new report out from the Federal Aviation Administration (FAA) seems to confirm earlier reports from whistleblowers, and that was enough to put shares in a 2% slump in Wednesday afternoon’s trading.
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The report from the FAA revealed that Boeing’s workers felt pressure to emphasize speed over quality when it came to aircraft production. Boeing’s workers also said that they did not get sufficient training to carry out their jobs as well. The findings, issued as part of a memo from the FAA, revealed “…troubling production problems, including Boeing’s struggle to adequately train and equip manufacturing personnel, thoroughly document and control nonconforming parts, and conduct adequate quality inspections.”
Boeing has said that it has been working to improve its production processes, with a particular focus on safety and quality, which is to be expected given the sheer level of federal scrutiny it has been under of late.
The “Union Will Not Bargain Through the Media”
The latest word out of Boeing’s union, who looks like it will reject Boeing’s “final offer” that we discovered yesterday, is not doing Boeing any favors. The union offered an update to members, noting that its “…members stand strong, and we remain ready to continue mediated or direct negotiations with Boeing.”
However, the union also offered this: “The only way to resolve this strike is through negotiations, and rest assured, your Union will not bargain through the media.” This is likely in reference to the fact that Boeing made its offer mostly public, sending it to union members rather than union management. Not that that would matter much; the union reported that its membership was not satisfied with Boeing’s “final offer” as it sits, which is enough to make one wonder just what will happen when this “final offer” is spurned.
Is BA Stock a Good 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 21.97% loss in its share price over the past year, the average BA price target of $210.79 per share implies 37.88% upside potential.
