It has been nearly a month since aerospace company Boeing Co. (BA) lost its machinists’ union to a strike, and the effects are starting to show. But the strikers are not inclined to go back to work until they secure a new contract.
A report from Reuters says the strikers are fully prepared to go the distance, with lead negotiator Jon Holden stating, “we’re in this for the long haul and our members understand that.” Right now, the membership is surviving off strike pay of $250 per week.
Meanwhile, Boeing is bleeding money. S&P estimates that the strike is costing the company $1 billion per month. The financial toll is likely to push Boeing to reach a settlement with the union soon, say some analysts.
Questions Surrounding a Boeing Aircraft Crash
In other news, reports have emerged around a recent crash from an Ethiopian Airlines flight. Back in 2018, the chief pilot for Ethiopian Airlines sent Boeing a message about potential issues with the flight control system. The pilot sought information on emergency procedures that should be undertaken if the flight control system on 737 Max failed like they did on a similar flight with Indonesia’s Lion Air.
Boeing’s response was, essentially, nothing. The company referred the pilot to a public document issued not long after the Lion Air crash, and said that it was, “…prohibited from giving additional information because it was providing technical support to Indonesian authorities investigating that crash.”
Is Boeing a Good Stock to Buy?
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 25.01% loss in its share price over the past year, the average BA price target of $206.11 per share implies 40.4% upside potential.
