Why Boeing Stock Is Nosediving Tuesday

Boeing Company BA shares are trading lower Tuesday ahead of the expiration of the company’s contract with the International Association of Machinists (IAM), which could lead to a potential strike. Additionally, Wells Fargo downgraded the stock from Equal-Weight to Underweight.

The Details:

The IAM represents approximately 20% of Boeing's workforce, and the current contract is set to expire at 11:59 p.m. on Sept. 12. According to a Barron's report, Boeing and the IAM are still "very far apart on wages, retirement, and medical" after more than three weeks of negotiations. 

The IAM has asked for wage increases of 40% over three years which would cost the cash-strapped aerospace company an additional $1.5 billion each year.  Boeing has faced reduced production levels and mounting debt after an incident in January 2024 when a Boeing aircraft's door panel blew off mid-flight. 

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Additionally, Wells Fargo analyst Matthew Akers downgraded Boeing's stock from Equal-Weight to Underweight and lowered the price target from $185 to $119, adding to investor concerns. According to data from Benzinga Pro, Boeing shares are down nearly 40% year-to-date. 

Will BA Stock Go Up?

When trying to assess whether or not Boeing will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $207.10 on Boeing. The Street high target is currently at $240 and the Street low target is $119. Of all the analysts covering Boeing, 6 have positive ratings, 3 have neutral ratings and one has a negative rating.

In the last month, 3 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Boeing have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Boeing is down 39.1% year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Boeing, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

BA Price Action: According to Benzinga Pro, Boeing shares are down 7.74% at $160.28 at the time of publication Tuesday.

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