Boeing Company BA Shares are trading lower on Tuesday as the company’s contract with the International Association of Machinists (IAM) expires, which could lead to a possible strike. In addition, Wells Fargo downgraded the stock to Underweight from Equal-Weight.

The details:

The IAM represents about 20 percent of Boeing’s workforce, and the current contract expires at 11:59 p.m. on September 12. According to a report by Barron’s, Boeing and the IAM are still “far apart” on wages, pensions and health insurance after more than three weeks of negotiations.

The IAM has demanded wage increases of 40% over three years, which would cost the cash-strapped aerospace company an additional $1.5 billion each year. Boeing is facing reduced production volumes and rising debt following an incident in January 2024 in which the door panel of a Boeing aircraft was ripped off in mid-flight.

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In addition, Wells Fargo Analyst Matthias Akers downgraded Boeing stock to Underweight from Equal-Weight and lowered its price target to $119 from $185, adding to investors’ concerns. Boeing shares have fallen nearly 40% since the beginning of the year, according to data from Benzinga Pro.

Will BA shares rise?

To estimate whether Boeing will trade at a higher price from the current level or not, it is advisable to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target for Boeing of $207.10. The highest price target is currently $240 and the lowest price target is $119. Of all the analysts covering Boeing, 6 have a positive rating, 3 have a neutral rating, and 1 has a negative rating.

In the last month, 3 analysts have adjusted their price targets. Here’s a look at the most recent price target changes (analyst ratings). Benzinga also tracks Wall Street’s most accurate analysts. See how analysts covering Boeing have performed in the recent past.

Stocks don’t move in a straight line. The average stock market return is about 10% per year. Boeing is down 39.1% year to date. The average analyst price target suggests the stock could still rise further.

For a comprehensive look at everything you need to know about Boeing, click here. If you want to go a step further, there’s no better tool than Benzinga Pro to help you do just that. Start your free trial today.

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

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