BUZZ-Boeing rises as co reaches tentative labor deal

Reuters09-09

** Shares of planemaker Boeing rise 3.1% to $162.5 in premarket

** Co reaches tentative agreement with over 32,000 union workers represented by International Association of Machinists and Aerospace Workers $(IAM.AU)$

** Proposed contract includes a 25% pay hike and commitment to build new commercial airplane in Seattle area

** Union members to vote on the proposed four-year contract on Thursday; if rejected, workers can strike as early as Friday

** Contract also includes better retirement benefits and giving union greater input in safety and quality of production system

** BA faces quality crisis and regulatory scrutiny, especially after a cabin panel of Boeing 737 MAX 9 blew off mid-air earlier this year

** Majority brokerages rate the stock "buy" or higher; their median PT is $224.50

** As of last close, BA stock had fallen 39.5% YTD, compared with a 13.39% increase in S&P 500 index

(Reporting by Nikhil Sharma in Bengaluru)

((Nikhil.Sharma@thomsonreuters.com;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment