Boeing Union Agrees to Delay Strike

Boeing needs outsourcing to remain competitive, but at the same time, continuing delays in the 787 program highlight the problems in establishing a global supply network.

In a report, Bank of America analyst Harry Nourse said the two sides appear close on the financial issues, but "it may be difficult for the union to achieve specific guarantees regarding future outsourcing."

He added that the union "may feel emboldened by the overwhelming majority of its members voting in favor of the strike."

Nourse said Boeing shares tend to trade down during strikes "before generally recovering in anticipation of an impending resolution." He reiterated a neutral rating and a $70 price target. Boeing shares closed Wednesday at $66.07.

Bank of America has a financial relationship with Boeing that includes providing investment banking services, nonsecurities services and ownership of 1% or more of a class of common stock.

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