We all know that aerospace stock Boeing (BA) is on the ropes right now, and has been for some time. But the newest reports are not doing it any favors, and it seems that it is having trouble from everything from its engineering functions to its janitorial operations. Boeing stock is reflecting this, as shares are lower again in Friday market trading.
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Word from the Seattle Times says that Boeing is calling in “…an outside janitorial contractor” to handle basic cleaning and maintenance functions, with staff coming in from Alabama and Mississippi as well as Texas. Boeing revealed that this was being done to ensure that the facilities are safe and ready to return to work as soon as the strike can be resolved.
And that resolution may be a long time in coming. Word from the International Association of Machinists and Aerospace Workers’ leader Brian Bryant, is that “…this strike is going to last as long as it has to.” Meanwhile, Boeing is continuing to cut costs in a bid to preserve its cash supply going into a time when it has no real production to speak of. This move is prompting concerns, even outrage, from the laid-off, particularly among contractors who were working on design fixes for the 777X line.
No Sale, Says Other Union
Boeing’s plans to cut costs are not always going as planned, either. The Society of Professional Engineering Employees in Aerospace (SPEEA) was asked to join in the furloughs at Boeing, despite the fact they were not on strike.
That might seem like a smart move on the surface, but there is a problem: the SPEEA’s own contract with Boeing forbids the use of furloughs against their membership. The contracts have a “…procedure for layoffs, which would include the payment of cash benefits to laid-off workers,” noted a representative with the SPEEA. Thus, the union unanimously rejected Boeing’s request to have them voluntarily take a 25% pay cut by joining in the one-week-in-four furlough plan.
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 ratings assigned in the past three months, as indicated by the graphic below. After a 23.48% loss in its share price over the past year, the average BA price target of $213.95 per share implies about 40% upside potential.
