Bernstein SocGen on Boeing (BA) Amid SPEEA Strike

Bernstein SocGen Group analyst Douglas Harned reiterated an Outperform rating and $298.00 price target on Boeing (NYSE: BA).

The analyst commented: "SPEEA strike? Removing an overhang of uncertainty, but also potential for delivery and FCF delays; Boeing’s engineering and technical labor union, SPEEA, voted to reject the company’s proposal on August 21st. The union also voted to authorize a strike. The current contract expires on October 6th. Rejection was for both the engineering and technician contracts. There are currently no further talks planned. With no resolution, a strike could begin on October 7th. The impact of a SPEEA strike has been generally described as affecting design work, such as certification of the 737MAX-10 and 777X. But, the impact should be considerably greater, as manufacturing engineers and technical support are also integral to ongoing production programs, particularly production in Renton and Everett. Boeing management appears to be taking a hard line, as it said that money in its proposal intended for one-time payments upon acceptance will now be used for a strike fund."

For an analyst ratings summary and ratings history on Boeing click here. For more ratings news on Boeing click here.

Shares of Boeing closed at $214.20 yesterday.

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