Boeing Stock Gains Ground After Machinists Union Endorses Contract Offer, Lifting Retail Optimism

Shares of Boeing Co. ($BA) rose more than 3% on Friday morning after the machinist union representing 33,000 striking workers endorsed the company’s latest contract proposal, with a vote scheduled for Monday. 

The IAM Union District 751 stated, "It is time for our Members to lock in these gains and confidently declare victory. We believe asking members to stay on strike longer wouldn't be right as we have achieved so much success.” 

The proposed contract includes a substantial wage increase of 38% over four years, along with a $12,000 signing bonus for workers. 

The machinists have been on strike since Sept. 13, having previously rejected two contract proposals. 

Retail sentiment for Boeing on Stocktwits shifted to ‘bullish’ from ‘neutral’ following the announcement, with increased message volume indicating heightened investor interest. 

Optimistic users noted the union’s stance as a positive sign for ratification, with one user stating, “$BA Union basically saying, we’ve done all we can do. It’s time to get back to work.”

Jefferies analyst Sheila Kahyaoglu reportedly commented that while vote outcomes can be unpredictable, the momentum appears favorable. 

She noted that the union’s endorsement could lead to approval and that wage increases alone could add approximately $1.1 billion to Boeing’s costs by the contract’s end. 

However, she also pointed out that Boeing’s recent announcement of 17,000 layoffs might offset these increased costs.

Kahyaoglu maintains a ‘Buy’ rating on Boeing stock, with a price target of $200 per share. 

Successful ratification would mark a significant victory for new CEO Kelly Ortberg, allowing Boeing to focus on rebuilding its workplace culture and improving production quality. 

Still Boeing’s shares have a long way to recover this year — they had fallen 43% year-to-date through Thursday’s close, reportedly ranking as the second-worst performer in the Dow Jones Industrial Average.

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