BofA Calls Recent Selloff In BA Stock ‘A Bit Dramatic’ – Says Near-Term Risk Lies In Potential SPEEA Strike

BofA defended Boeing’s turnaround outlook, citing labor negotiations as a key near-term catalyst.

• BofA maintained its ‘Buy’ rating and $270 price target on Boeing.
• A potential SPEEA strike risk is the key near-term concern ahead of the Oct. 6 contract expiry, BofA said.
• Twenty-three of 28 analysts tracked by Koyfin rate BA “Buy” or “Strong Buy.”

Boeing (BA) shares were in focus on Friday morning after Bank of America said the recent selloff in the stock was “a bit dramatic” while reiterating its ‘Buy’ rating and $270 price target.

According to TheFly, BofA analyst Ronald Epstein noted that Boeing shares had swung about 7% lower earlier this week after CEO Kelly Ortberg discussed challenges facing the planemaker at the Morgan Stanley Laguna Conference. The firm said it would not expect Boeing’s turnaround effort to follow a linear path and that setbacks should be expected along the way.

BofA said the key near-term risk for Boeing is a potential strike involving the Society of Professional Engineering Employees in Aerospace (SPEEA), with the current contract expiring on Oct. 6.

Boeing Production Ramp Faces Delays

At the Morgan Stanley Laguna Conference on Wednesday, Boeing President and CEO Kelly Ortberg said the company is taking longer than expected to stabilize 737 production at a rate of 47 aircraft per month. The comments contributed to a sharp decline in BA shares.

Ortberg said that wings production remains a key constraint, while Boeing’s broader supply chain is in relatively good shape, according to comments reported by TheFly. The company is working to address the remaining production issues before moving to a higher monthly rate, with the next increase expected next year.

Boeing also said supply-chain coordination and inventory levels will become more important as production moves toward rates of 52 and 57 aircraft per month. Inventory levels remain relatively elevated.

Boeing continues to target 777X deliveries in 2027, although some certification testing could extend into next year.

According to Kyofin data, 18 of 28 analysts rate BA as a “Buy,” five rate it “Strong Buy,” and the remaining five rate it “Hold.”

BofA’s warning around SPEEA comes as Boeing and the union move toward a contract vote. Boeing said its latest offer includes a 10% guaranteed wage increase effective Oct. 2 following ratification, another 4% increase in March 2027 and additional wage pools in subsequent years.

SPEEA’s current contracts for its Professional and Technical units expire on Oct. 6, while the union has scheduled voting on Boeing’s final offer from Sept. 24 through Oct. 1.

Retail Take on BA

On Stocktwits, retail sentiment for BA improved to “Extremely bullish” from “Neutral” over the past 24 hours, while message volume was “high” during the same period. BA was also among the trending tickers on Stocktwits at the time of writing.

BA shares are down 8% year-to-date.

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