Boeing 2024 deliveries forecast cut at Jefferies amid ongoing strike

Investing.com — An ongoing strike by Boeing (NYSE:) workers in the US West Coast is likely to dent the aerospace giant’s plane deliveries this year, according to analysts at Jefferies.

In a note to clients bringing their price target down by 55% to $240, the analysts argued that, assuming the labor action is over by early October, deliveries in 2024 are now estimated to come in at 422 — down from their prior forecast of 480.

The analysts also pared back their forecast for 2025 deliveries to 600 from 672.

As a result, they also now expect Boeing to post an annual loss of $6.40 compared to a previous outlook of a loss of $4.25. Wall Street consensus projections see the figure at a loss of $4.71.

Boeing is seen posting earnings per share of $2.20 next year, below Jefferies’ previous estimate of $5.60.

The International Association of Machinists and Aerospace Workers (IAM), who represent more than 30,000 striking Boeing employees in the US Pacific Northwest, are in fraught negotiations with the company over issues like compensation and benefits. IAM and Boeing had previously reached an agreement, but workers voted against the deal earlier this month and chose to begin the work stoppage.

According to Reuters, Boeing kicked off planned furloughs for thousands of employees in Washington State and Oregon last week, in an indication that the firm may be preparing for an extended strike.

Several analysts have warned that a protracted strike could prove to be financially damaging for Boeing, potentially costing the firm billions of dollars during a time when its safety record has already come under intense scrutiny. Chief Executive Kelly Ortberg, who only took over at the helm of Boeing in August, has called ending the strike a “top priority.”