Boeing labor deal ‘seems like a good outcome,’ says JPMorgan

JPMorgan says the deal with Boeing that union leadership endorsed “seems like a good outcome for the company in that it would avoid a prolonged strike that Boeing cannot afford.” Moreover, the financial terms seem acceptable, incorporating some union recognition of the company’s difficult financial position, the analyst tells investors in a research note. However, the firm finds it “quite possible” that the rank-and-file members on September 12 vote to reject the deal, in which case the terms are a “reasonable jumping off point from which Boeing can make some incremental concessions.” JPMorgan has an Overweight rating on Boeing with a $235 price target.