Boeing Facing Challenges: Delivery Declines and Union Strike Affect Stock Price

Boeing is currently facing several challenges that are putting pressure on the company's stock price. After the aircraft manufacturer announced on Tuesday that it delivered over 33 planes to customers in September, the shares are now in a downward trend due to production disruptions. Despite a strike, Boeing managed to deliver 27 MAX series aircraft in September, which RBC analyst Ken Herbert considers slightly positive. However, Herbert forecasts a significant drop in deliveries for October as the strike by the International Association of Machinists and Aerospace Workers (IAM), ongoing since September 13, has brought production of the 737, 767, and 777 models to a halt. Initial expectations for the year were set at 400 to 450 delivered MAX aircraft, but this may now drop to around 325. Investors are already looking towards an increase in MAX model production in 2025, with stable monthly deliveries in the high 30s by the end of the year. Current investor concerns, however, are less about new orders and more about resolving contractual disputes with the IAM and managing liquidity and cash flow challenges during the strike. Negotiations with the union have been inconclusive, exacerbating the financial strain on Boeing. Technical indicators in the financial markets show that the stock is under significant selling pressure, with risks of further price declines. Analyst Herbert gives Boeing stock an "Outperform" rating with a price target of $220.