Boeing stock falls amid breakdown in union talks, risk of credit rating downgrade
Published On Oct 9, 2024, 10:06 AM
Boeing's stock fell more than 2% after the company withdrew its contract proposal during negotiations with its machinist union, which has been on strike for over four weeks. Talks broke down due to the union's demands which Boeing deemed non-negotiable. Additionally, S&P has placed Boeing on CreditWatch negative, indicating a potential downgrade to junk status due to ongoing labor issues. The current strike is estimated to be costing Boeing over $1 billion per month, further complicating its recovery efforts in production and impacting its financial outlook for 2024.
Stock Forecasts
BA
Negative
Boeing's ongoing labor disputes and the potential downgrade of its credit rating are significant red flags for investors. The company's stock may continue to decline as uncertainties around operational capabilities and financial health persist. The risk of further disruption in production due to the strike and the negative sentiment from credit rating agencies could lead to a bearish outlook in the short to medium term.
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