Barclays keeps an Equal Weight rating on Boeing after the International Association of Machinists and Aerospace Workers rejected its tentative agreement with the company, with 95% voting against the contract and 96% voting in favor of a strike. The firm believes the “overwhelming nature of the vote sets up the potential for an extended work stoppage.” A lengthy work stoppage could pressure Boeing to raise additional funding, the analyst tells investors in a research note. Barclays estimates Boeing’s monthly incremental cash impact of a strike at $1.0-$1.5B. Without accounting for the impact of a strike, it estimate Boeing’s cash balance will drop to near $10B in Q3 from $12.5B at end of Q2.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on BA:
- Moody’s places Boeing on review for downgrade after worker strike
- Boeing CFO says too soon to predict free cash flow for 2024, 2025
- Boeing to take ‘necessary actions’ to keep investment rating, says CFO
- Boeing factory workers strike halts 737 MAX production: Morning Buzz
- Boeing CFO sees negative margins for defense unit in Q3