受此影响，波音股价下跌约0.8%，至每股155.55美元，而此前在上周五，该公司股价因工会工人在周四以压倒性票数通过罢工投票而下跌了3.7%。与此同时，标普500指数上涨0.1%，道琼斯工业平均指数则上涨了0.6%。Boeing's stock price fell by about 0.8%, to $155.55 per share.
According to Sina Finance APP, Boeing (BA.US) stock price has once again dropped as investors continue to assess the impact of the ongoing strike on the aircraft manufacturer. Following the negotiation details mentioned in the letter to employees by CFO Brian West, the company's stock price faces further downward pressure.
West wrote in the letter: "This strike seriously threatens our recovery process, and we must take necessary measures to protect cash flow and safeguard our common future. Importantly, we will ensure all funding for safety, quality, and direct customer support." He also mentioned that Boeing will implement a hiring freeze and pause salary increases for employees.
As a result, Boeing's stock price fell by about 0.8% to $155.55 per share. Earlier last Friday, the company's stock price dropped by 3.7% due to overwhelming strike approval by union workers on Thursday. Meanwhile, the S&P 500 index rose by 0.1%, and the Dow Jones Industrial Average index increased by 0.6%.
CappThesis founder and market analyst Frank Cappelleri said in an interview with foreign media, 'Boeing stock faces key support in the range of $156 to $162, which has formed lows in April, August, and September.' He added that if this level is broken, Boeing stock price may further decline significantly.Technical AnalysisCappThesis founder and market analyst Frank Cappelleri said in an interview with foreign media, 'Boeing stock faces key support in the range of $156 to $162, which has formed lows in April, August, and September.' He added that if this level is broken, Boeing stock price may further decline significantly.
Fairlead Strategies founder Katie Stockton added, "Oversold market conditions support stock prices stabilizing, but if Boeing stock prices break through the support range of $150 to $160, prices may face a major blow." Level 2ResistanceAround $120.
Due to increased uncertainty caused by strikes, investor interest in Boeing stocks has declined. According to FactSet data, Wall Street estimated Boeing's EPS to be $4.3 at the beginning of 2024, free cash flowwith $6 billion of free cash flow. However, current expectations have been revised to a loss of $4.41 per share, with an estimated free cash flow of negative $7.6 billion.
Analysts predict that if the strike lasts for one month, the cash flow consumption in 2024 will increase by $1 billion to $1.5 billion.
The drop in stock prices last Friday has led to a cumulative decline of 40% for Boeing this year. Production and quality issues have been plaguing Boeing and its stock price. Since the incident on January 5, when Alaska Airlines operated the 737 MAX 9 and experienced an emergency cabin door plug detachment during the flight, Boeing's stock price has fallen by approximately 37%. This incident has led to a slowdown in production, which in turn has lowered the company's earnings and free cash flow expectations, and increased regulatory supervision.
Currently, shareholders hope that Boeing can resolve the strike issue as soon as possible. Analysts warn that the duration of the strike will determine its specific impact on the company.
Josh Sullivan, an analyst at Benchmark, wrote in a research report last Friday: 'Ultimately, this situation depends entirely on the duration of the strike.' Nevertheless, he still maintains a 'buy' rating on Boeing's stock, with a target price of $250, which represents a potential upside of approximately 59% from the current stock price.
Robert Spingarn, an analyst at Melius Research, pointed out in a report on Monday: 'The strike by the International Association of Machinists is just a microcosm of the hostile relationship between Boeing, its employees, suppliers, regulatory agencies, and other stakeholders.'
He further added that Boeing will need to do a lot of work after the strike ends in order to make its stock price a stable performer. Future work includes repairing Boeing's nearly $60 billion debt burden, investing in new aircraft to compete with Airbus, and improving employee relations.
Overall, about 60% of analysts have a 'buy' rating on Boeing's stock, while the average 'buy' rating proportion for stocks in the S&P 500 index is approximately 55%. Currently, the average target price for Boeing's stock among analysts is $213.
