New reports suggest that commercial aircraft maker Boeing Co.’s (BA) workers are ready to carry on their strike, and that—plus new reports of mechanical issues with its planes—continue to pressure the company’s stock.
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A report from HeraldNet revealed that the Boeing strike has gone on for the last 19 days, and picketers are showing no signs of wavering. This is in spite of the fact that Boeing apparently made its “best and final offer” just days ago to employees. And the reports note that Boeing employees are prepared to keep right on picketing until “…Boeing offers a fair contract to 33,000 members…” of the striking union.
Union workers are required to spend at least four hours daily on picket lines, and many stay longer. Others, like Ryan Bergh, go farther still; Bergh recently brought a smoker with him and cooked 14 hours for the picketers, and others still burn wood in stoves in a bid to stay warm while picketing late at night. Indeed, the union’s “high morale” is proving a real surprise to Boeing management.
More Mechanical Issues
Boeing’s recent history has been marked by mechanical failures, including four tires on a Boeing 777 that burst when the flight landed at Bergamo Airport in Milan, Italy. Bergamo is Italy’s third busiest airport.
But that almost pales in comparison to the latest word from the Federal Aviation Administration (FAA), who released an airworthiness directive on Boeing 777 planes. Apparently, the planes are susceptible to lightning strikes. This is due to a fuel feed lightning protection failure connected to a bonding jumper outside the fuel tank.
Is Boeing a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buy, four Hold and two Sell recommendations assigned in the past three months, as indicated by the graphic below. After a 19.15% rally in its share price over the past year, the average BA price target of $206.11 per share implies 36.55% upside potential.
