There’s little doubt that aircraft maker Boeing (NYSE:BA) has been on the ropes for the last few weeks. New remarks from the company were likely intended to engender hope, but investors aren’t feeling particularly hopeful. Boeing shares are down nearly 3% in the closing minutes of Tuesday’s trading session after it tried in vain to reassure investors that production will soon stabilize.
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Boeing looks to make 38 737 Max jetliners in this year’s second half, Boeing’s chief financial officer, Brian West, revealed during an investor conference. That follows a recent cutback in production after a series of malfunctions took place on Boeing flights. This led to the Federal Aviation Administration (FAA) getting involved, limiting Boeing’s production output temporarily while more closely considering the policies Boeing had in place around quality control. While Boeing doesn’t know when the FAA’s training wheels will come off, it still looks to get back to normalcy sometime soon.
More Troubles Ahead
But Boeing may have bigger problems on hand, and they’re not production-related. This time, the troubles may come from the end-user market: the airlines. Today, flight attendants from 24 different airlines are getting together to picket outside 30 different airports. The flight attendants are protesting the combination of worsening working conditions and pay that, as is the case for so many, isn’t keeping pace with rising inflation. Changes in flight attendant pay and working conditions will likely cost airlines more and make them less inclined to buy any of Boeing’s planes.
What Is the Prediction for Boeing Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 17 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 7.12% loss in its share price over the past year, the average BA price target of $262.67 per share implies 28.84% upside potential.
