Boeing labor rejection adds further uncertainty, costs, says BofA

BofA notes that Boeing’s (BA) Kelly Ortberg used his first earnings call as CEO to reset expectations and provide a clear message to investors, stating that “one of the most important messages on the call was Kelly’s commitment to bringing a clean sheet aircraft to market.” The firm sees Kelly’s message as “one to reinvigorate the workforce and culture at Boeing,” adding that arguably the most critical near to step to make Boeing “great again”, to quote Kelly, is ending the strike. However, the union rejected the latest deal on Wednesday night, which adds further uncertainty, costs, and recovery delays as the strike approaches day 40. The firm, which anticipates further concessions of wages will be required for a deal to pass, reiterates a Neutral rating and $170 price target on Boeing shares.