Am I the only one who thinks Boeing (BA) is starting to look like the “This is Fine” dog? For those who don’t know, it is a meme that involves a dog sitting in a kitchen while the house is on fire as it says those words. At Boeing, everything is going wrong, and bad news about the Starliner, as well as union problems, just keep on coming. Shareholders continued to abandon ship, sending shares down fractionally in Thursday afternoon’s trading.
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Issues regarding the Starliner’s return—which may not actually happen until February of next year—emerged today, as reports note that NASA is considering the matter more closely and not liking what it sees. A decision on the matter is expected next week, and several factors are said to be weighing on the decision right now, noted a report from the Washington Post.
The safety of the astronauts is, of course, front of mind. But there are also other consequences afoot. Both NASA and Boeing’s reputations are on the line here, and with Kamala Harris at the head of the National Space Council—and, you know, running for president—she does not need a huge embarrassing failure in space right now, especially if it comes with casualties.
Boeing Is Facing a Contract Expiration with Its Workers
Things got worse after the release of a report from Barron’s titled “The Big Risk for Boeing Stock No One is Talking About.” That report—which we actually talked about right here back in July—detailed how Boeing is facing a contract expiration with its workers. A strike authorization has already been set up, and though the contract has until September 12 to run, that is certainly a lot closer now than it was back in late July.
While a peaceful settlement, according to five-star analyst Cai von Rumohr with TD Cowen, could represent a “leveraged 2025-26 cash lift,” failing to reach a settlement could instead mean “greater than normal risk.” And with Boeing’s supply chain still looking in less than stellar shape, it does not need further impediment right now to getting planes out the door and cash in the coffers.
Is Boeing a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 24.32% loss in its share price over the past year, the average BA price target of $217.47 per share implies 25.54% upside potential.
