The longest strike in Boeing’s history has come to an end, with employees in St. Louis’ defense operations set to return to work on Monday. After voting to accept Boeing’s new contract terms, things are beginning to normalize. Interestingly, despite this resolution, Boeing’s stock saw a slight dip during Thursday’s afternoon trading.
All 3,200 members of the International Association of Machinists and Aerospace Workers District 837 will be back at their posts, having approved a revised contract that wraps up a strike that started in early August. As part of the agreement, workers will receive a $6,000 signing bonus, and their average wages will rise by about 24% over the contract’s duration.
There appears to be a subtle caveat in this deal. Boeing’s chief legal counsel, Steve Parker, mentioned that while jobs will remain if the union agrees to the latest contract offer, he couldn’t guarantee this for the future.
Heading to Dubai
With the Dubai Air Show just around the corner, set to start on November 17, Boeing is preparing to showcase the 777X. The aircraft is currently en route to Al Maktoum International Airport, expecting to arrive around 1 PM local time.
The 777X marks a significant innovation for Boeing. Reports indicate it not only has a greater range than typical models but also boasts one of the highest seating capacities on the market. Its folding wing tips and powerful turbofan engines are described as the most efficient design currently available.
Is Boeing a good investment now?
On Wall Street, analysts are optimistic about Boeing’s stock, rating it as a Strong Buy based on 13 buy recommendations and 2 holds in the last three months. The average price target for the stock is $258.23 per share, suggesting a potential upside of about 31.95%, following a substantial 41.52% gain in price over the past year.
