New Filing Suggests Boeing (NYSE:BA) Might Be an Activist Target
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New Filing Suggests Boeing (NYSE:BA) Might Be an Activist Target

Story Highlights

Boeing slips as the possibility of a new activist investor emerges, even as more troubles come out of the Everett plant. Meanwhile, two new military repair centers crop up in Jacksonville, Florida.

It’s no surprise that aircraft maker Boeing (NYSE:BA) is drawing plenty of attention lately. It’s made several critical missteps that have left it struggling to come back. With the Federal Aviation Administration (FAA) looking at it more critically and some deals being reconsidered, it is drawing a lot of interest. A new 13F filing suggests that activist investors may have an eye on Boeing, which couldn’t keep it from a fractional loss in Friday afternoon’s trading.

Reports note that investment bank UBS (NYSE:UBS) increased its Boeing holdings to nearly double its previous levels, going from 330,000 shares in September to 636,000 shares at the end of the fourth quarter. That’s a pretty short time for such a big jump and has some eyebrows raised. Don Bilson with Gordon Haskett noted that UBS’ position in Boeing isn’t a red flag by itself, but it is worth taking notice of. With Boeing board nominations having been closed since January 19 and the proxy votes about to start in a few weeks, the end result could be an activist battle brewing behind the scenes.

Other Troubling Signs in a Different Background

There have been other troubles at Boeing as of late. A recent Everett plant worker turned whistleblower noted that, at the Everett plant, Boeing has been actively “cutting corners.” Several “non-compliance issues” were raised, and the original report is keeping the worker’s identity silent for fear of reprisal. It didn’t help matters when the employee included a photo from the plant where a sign read “Just Ship It.” Meanwhile, Boeing opened two new repair facilities dedicated to military aircraft in Jacksonville, Florida, which will bring 300 new jobs to the region.

What Is the Target Price 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 1.8% loss in its share price over the past year, the average BA price target of $262.67 per share implies 25.64% upside potential.



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