The ongoing strike at aerospace company Boeing Co. (BA) has done the stock no favors. Production is minimal, costs are mounting, and there is not much sign of getting back on track. Now, Boeing’s employees are calling on the CEO to “truly engage.”
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Boeing’s negotiation style has been unusual so far. Management has engaged in toothless ultimatums. It has made private negotiations public. And now, Boeing’s own employees are calling on new CEO Robert Ortberg to get more personally involved in the negotiations.
Brian Bryant, president of the International Association of Machinists and Aerospace Workers, the union that is striking, said that “It’s time for the new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions.” Bryant pointed to a recent cut in healthcare coverage to illustrate his frustrations.
How the Port Strike Hurts Boeing
As if all this weren’t bad enough, another problem is hurting Boeing: the longshoreman’s strike. That strike has the potential to hurt Boeing as several of its facilities get parts from some of the ports that have shutdown in recent days.
For instance, the 787 Dreamliner is a product of South Carolina, and that facility gets its parts from a port in Charleston. With that Charleston port shutdown, Boeing loses access to parts at a time when its own production is crippled by the machinists’ strike.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong 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 18.48% loss in its share price over the past year, the average BA price target of $207.68 per share implies 35.16% upside potential.
