BofA Sees Near-Term Risk for Boeing in Looming SPEEA Strike

Bank of America (BofA) has downplayed the recent selloff in Boeing shares, calling it 'a bit dramatic' while maintaining its 'Buy' rating and $270 price target. The bank's analyst Ronald Epstein noted that Boeing CEO Kelly Ortberg discussed challenges facing the planemaker at the Morgan Stanley Laguna Conference, leading to a 7% drop in shares earlier this week.

BofA sees near-term risk for Boeing as a potential strike involving the Society of Professional Engineering Employees in Aerospace (SPEEA), with the current contract expiring on October 6. The union has scheduled voting on Boeing's final offer from September 24 through October 1, and the company has offered a 10% guaranteed wage increase effective October 2.

Boeing continues to target 777X deliveries in 2027, although some certification testing could extend into next year. The company is working to address production issues, with wings production remaining a key constraint. Inventory levels remain relatively elevated, and supply-chain coordination will become more important as production moves toward rates of 52 and 57 aircraft per month.