So the union troubles at aerospace stock Boeing (BA) are still carrying on, despite a new offer being submitted to Boeing by the union. And now, someone fairly high-profile has come out in support. Sen. Bernie Sanders recently offered a note of support for the union, and Boeing shares gained modestly in Thursday afternoon’s trading.
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Sanders offered up a letter to Boeing CEO Kelly Ortberg, pointing out that just accepting the union’s recent proposal would end the strike immediately. Sanders also points out that the contract offered in St. Louis is actually less generous than the one offered in Washington, so closing that gap could be worthwhile.
Sanders noted, “What the Machinists in St. Louis are proposing is not radical. It is less generous than the contract you ratified last year with 32,000 Machinists in Washington state. If Boeing can afford to spend $68 billion on stock buybacks and provide golden parachutes worth over $100 million to former executives, it can afford to provide decent retirement benefits and fair wages to its workers.” Sanders also made it a point to call out Boeing’s plan to cut health insurance to striking workers.
Simulation Making, Real Spending
Boeing also made an unexpected side move, as it dropped $1.4 million into a company in Halifax, Nova Scotia: Bluedrop Training and Simulation Inc. The company is working on a new simulator program for users of the V-22 Osprey. Regarded as one of the most “versatile combat aircraft” in the United States’ air operations, the simulation will “…link the front-end pilot simulator to the back-end simulator…”
The end result is a connectivity advantage, reports note, as well as a means to better train crews to take on new missions. Executive vice president for technology and simulation at Bluedrop Jean-Claude Siew noted, “If you think about having training on an actual helicopter, think about the fuel you burn, think about the blade hours that you spend on the helicopter, and the pure risk. When you train, you want to train for things you don’t want to happen.”
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 16 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 42.97% rally in its share price over the past year, the average BA price target of $260.73 per share implies 19.61% upside potential.
