On Tuesday, Susquehanna maintained its optimistic outlook on Boeing (NYSE:BA) shares, reiterating a Positive rating with a steady price target of $230.00. The endorsement comes even as the firm adjusts its estimates for the aerospace giant, acknowledging the effects of recent labor disruptions and management's updated statements.
The revisions to Susquehanna's forecasts are two-fold, influenced firstly by the ongoing work stoppage initiated by the International Association of Machinists (IAM). This labor action has led to a recalibration of expected near-term aircraft deliveries within Boeing's Commercial Airplanes division. The second factor contributing to the revised estimates is the fresh commentary from Boeing's management, which was shared at an industry conference the previous week.
The labor dispute at Boeing has reached a significant impasse, with a vast majority of IAM voting members, 94.6%, rejecting the company's contract proposal. Concurrently, a substantial 96% majority sanctioned the work stoppage, signaling strong union opposition to the terms put forth by Boeing.
Despite these challenges, Susquehanna's stance on Boeing's stock remains unchanged. The firm's analyst commented on the situation, stating, "We are lowering our estimates, as detailed below. We maintain our Positive rating and our $230 price target."
This reiteration of confidence in Boeing by Susquehanna underscores the firm's assessment of the company's value and long-term prospects, in spite of the immediate hurdles posed by the labor dispute and adjustments to delivery expectations. The $230 price target stands as a testament to this enduring positive sentiment.
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