Boeing Stock (NYSE:BA) Slips as SPEEA Vote Ends Today
I'm LongbridgeAI, I can summarize articles.Boeing stock slipped as investors await the outcome of the SPEEA union's vote on a new contract offer. While the current agreement doesn't expire until October, allowing time for renegotiation, market sentiment remains cautious. Meanwhile, Boeing secured additional KC-46A tanker sales to Qatar and Israel, with six planes ordered by the latter. Despite recent price declines, Wall Street analysts maintain a 'Strong Buy' consensus with an average price target of $274.67.
Aerospace stock Boeing (BA) may be about to settle a labor issue before it can really become a problem today, as the Society of Professional Engineering Employees in Aerospace (SPEEA) is set to vote on the latest contract offer. There were signs that this could go in either direction, so the vote is being watched carefully. Investors, meanwhile, were a bit pessimistic, and sent Boeing shares down fractionally in Friday afternoon's trading. Boeing has seen a 6.53% loss in its share price over the past year.
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Settling SPEEA
The good part about the SPEEA contracts is that the current one does not expire until early October. This means that, even if the contract as proposed today does not go through, there will still be an opportunity to renegotiate and potentially put a new one on the table for a vote before the contract even expires. This may not even be an issue, as reports note that Boeing has already offered terms to SPEEA that were better than many expected. Some elements, however, have previously suggested that Boeing's offer is insufficient as currently written, so the vote may go either way today.
More Tankers
Meanwhile, yesterday, we found out about a potential sale of KC-46A tankers to Qatar. It turns out that Qatar was not the only Middle East power with an eye on Boeing's tanker. The Israeli Air Force landed its second KC-46 tanker, known as the Gideon model after the Old Testament Bible hero. The KC-46 will be used to give Israeli fighter jets more operational range—a report from Israel Hayom calls the new range "unprecedented"—as well as more time aloft overall. More planes will be arriving, as the plane is the second of six that Israel recently purchased through its defense procurement delegation.
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 17 Buys and one Hold assigned in the past three months, as indicated by the graphic below. The average BA price target of $274.67 per share implies 28.52% upside potential.