Boeing: Jefferies reiterates Buy rating on stock

(CercleFinance.com) - Jefferies maintains its Buy rating on Boeing shares, with an unchanged price target of $240.


The analyst reports that negotiations between the aircraft manufacturer and the IAM union are still at a standstill, with Boeing having even withdrawn its latest offer, dated 23 September while the strike has been going on for almost four weeks.

It is still unclear what are the biggest obstacles to reaching an agreement (retirement?), but both sides are looking to bridge the gap as the third mediated negotiation ended without any progress, the broker understands.

Jefferies also reports that S&P has placed Boeing's credit rating on negative watch. The rating agency estimates that Boeing will suffer a cash outflow of around $10bn in 2024 (Jefferies expects $9.7bn) linked to the redesign of the manufacturing process and costs associated with the strike.

S&P also estimates that Boeing will likely require additional financing to maintain its target cash balance, fund operations and meet debt maturities, reports Jefferies.


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