Citi sees Boeing news flow turning positive after labor deal

Citi believes the current labor negotiation “is likely to be one of the final milestones to work through before news flow turns more constructive” for Boeing. The firm does not expect this to be a long, drawn-out process given the economic incentives on both sides. The current labor strike is likely to appear as another of the supply chain disruptions the industry has experienced over the past several years and once in the review mirror, investor attention is likely to turn to Boeing’s productivity, inventory liquidation, cash generation and de-levering, the analyst tells investors in a research note. Citi believes all of these are likely to see improvement over time and keeps a Buy rating on the shares with a $224 price target.