Boeing Faces Dual Challenges as Labor Vote and Analyst Outlook Weigh on Shares

The aerospace giant Boeing is navigating significant pressure from two distinct fronts this week. As market experts recalibrate their forecasts following the release of October delivery figures, a critical labor vote involving thousands of striking defense workers could determine the near-term trajectory for the company's stock.

A key development is underway at Boeing's defense division in St. Louis, where approximately 3,200 employees currently on strike are voting on a new contract proposal. The company's offer includes a $6,000 ratification bonus and emphasizes increased cash compensation over stock options.

A positive outcome is crucial for Boeing. The labor action, now in its fourth month, has disrupted production of vital military aircraft, including the F-15 and F/A-18 fighter jets. Should workers approve the agreement, operations could resume as early as next Monday, providing much-needed stability to this segment.

Market Strategists Adjust Delivery Forecasts

Recent data revealing Boeing delivered 53 commercial aircraft in October has prompted a mixed response from Wall Street. While the total included 40 of the in-demand 737 models, placing the fourth quarter ahead of some projections, it also led several firms to moderate their price targets.

Should investors sell immediately? Or is it worth buying Boeing?

Susquehanna maintained its "Positive" rating on Boeing shares but reduced its target from $270 to $255. This cautious adjustment was mirrored by UBS and JPMorgan. In a contrasting move, Freedom Capital Markets upgraded its stance on the stock from "Hold" to "Buy." The collective analyst sentiment points toward a constructive yet more guarded outlook.

A Gradual Climb Amidst Stiff Competition

Despite these concurrent challenges, evidence of a slow but steady operational recovery is emerging. With 493 jet deliveries year-to-date, Boeing is positioned to achieve its strongest annual performance since 2018, a period preceding both the 737 MAX grounding and the pandemic.

However, the competitive landscape remains intense. Rival Airbus maintains a clear lead, having delivered 585 aircraft in the first ten months of the year. Boeing recently received a boost from the Federal Aviation Administration, which authorized an increase in 737 MAX production from 38 to 42 units per month. Furthermore, the 777X program, slated for first delivery in 2027, has successfully cleared another certification milestone.

The upcoming Dubai Airshow, starting next week, presents the next significant test for Boeing. The event will be a key indicator of whether the company can maintain its recovery momentum by securing new orders and demonstrating further progress on its production goals.