Boeing (NYSE:BA) Walks Away from Deal Talks

So contract talks between aerospace company Boeing Co. ( BA ) and its striking machinists are not going well. They're not going so well, in fact, that Boeing has withdrawn its latest contract offer and walked away from negotiations for the time being. BA stock traded down 3% on the news.

Boeing's latest offer includes a 30% pay increase for striking machinists over four years. But that offer is now officially off the table. The union revealed that it “surveyed its members” after receiving the offer and “…it was overwhelmingly rejected.”

Boeing subsequently attempted to take the moral high ground, declaring that “…the union did not seriously consider our proposals….” Further, Boeing noted, “…the union made non-negotiable demands that we could accept.” More than that. Staying competitive as a business.”

Boeing's Efforts to Raise Cash

Meanwhile, Boeing still finds itself in a cash crunch and things are only going to get worse A report from Bloomberg The details are a good chance that S&P Global Ratings was poised to downgrade Boeing's credit rating to “junk” status as it continues to struggle with strikes.

There is some hope. Boeing has reportedly received several offers from banks, including JPMorgan Chase ( JPM ) and Bank of America ( BAC ), which have offered possibilities for various fundraising activities. Common stock sales, mandatory convertible bonds and preferred equity have all been advanced as options, according to a report from Reuters. A source, the report noted, suggested Boeing was targeting a fundraising of around $10 billion.

Is Boeing stock a buy?

Turning to Wall Street, analysts have a median buy consensus rating on BA stock based on 15 buys, four holds and two sells assigned over the past three months, as indicated by the graphic below. After a 22.27% loss in its share price over the past year, BA's average price target of $206.11 per share suggests a potential upside of 37.06%.

See more BA analyst ratings

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