It would be easy to forget that some of Boeing’s (BA) workforce did not strike but was still not allowed to continue working anyway. These folks were furloughed, and the aerospace company has a welcome development for them today. Investors were all right with it as well, as shares were up modestly in Friday afternoon’s trading.
Boeing has agreed to pay furloughed workers for the time they lost during the machinists’ strike, noted a report from the Seattle Times. It is being referred to as a “goodwill gesture,” giving back the pay for the time that employees were asked to take off without pay in a bid to help Boeing conserve cash during the strike. Now, fresh off a huge stock sale, Boeing is giving that cash back.
A note from CEO Kelly Ortberg came with the announcement, as Ortberg applauded the “sacrifice” employees made that “made a difference and helped the company bridge to this moment.” However, the furloughs are not the same as the involuntary layoffs, which apparently are still set to happen next week.
Another Unit Sale to Come?
Meanwhile, a report from Bloomberg reveals that Boeing may have a plan to sell off the Jeppesen navigation unit. Boeing’s Jeppesen unit offers “interactive flight plans,” and the report noted that the notion is already drawing potential buyers. Depending on conditions, Boeing may be able to realize as much as $6 billion for the unit.
With Boeing carrying $58 billion in debt right now, and its bottom line considerably hampered by a two-month machinists’ strike, the notion of selling off portions of its operation makes quite a bit more sense. Nevertheless, the process is still in its early stages, so Boeing may not sell off at all, the report noted.
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, six Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 21.24% loss in its share price over the past year, the average BA price target of $193.62 per share implies 27% upside potential.
