Boeing Just Got Hit With The Ultimate “Triple Whammy” (It Can’t Get Worse... Right?)

For the past six years, Boeing has been serving up bad news like it’s an all-you-can-eat buffet at Golden Corral. And just when you thought they couldn’t add another item three more items to the menu, they’ve gone and outdone themselves.

Boeing shares are down over 3% this morning after a top Wall Street analyst decided to downgrade the company’s price target. If that wasn’t bad enough, a press release just revealed 32,000 of their workers are on the verge of an all-out strike, which could leave Boeing scrambling to keep the lights on—literally. Oh, and did I mention that the astronauts stranded in space thanks to Boeing’s faulty space capsule will be rescued by none other than SpaceX? Talk about adding insult to injury. That’s what I like to call a “triple whammy.”

Alongside Wells Fargo, Bank of America analyst Matthew Akers took one look at Boeing’s financials and decided it was time to put the company on a diet. He slashed his price target by a hefty $66, dropping it to a dismal $119 per share. If you’re wondering why, let’s just say Boeing’s free cash flow is as mythical as Bigfoot sightings these days. This comes just a couple months after Bank of America quoted “Boeing is too big to fail.”

Akers had the kind of praise for Boeing that you usually reserve for your least favorite coworker. He acknowledged that the company had a "generational free cash flow opportunity" this decade—if they could stop setting money on fire, that is. But with production delays, rising costs, and a looming aircraft investment cycle, Akers predicted that Boeing’s cash flow would peak by 2027. 

And after that? Well, let’s just say it’s not looking pretty. Boeing’s $45 billion in net debt isn’t helping either, making an equity raise likely, which would further dilute shares and disappoint investors. As if Wall Street’s cold shoulder wasn’t enough, Boeing’s workforce is about to throw down their tools and walk out the door. The contract between Boeing and the International Association of Machinists (IAM) is about to expire, and unless some miracle happens, Boeing could be facing its first strike in 16 years.

The union is digging in its heels over wages, health care, and retirement benefits—basically, all the things that keep employees from rioting in the break room. The last time Boeing went through contract negotiations, the union had to swallow some bitter pills, like increased payments for health insurance and the loss of traditional pensions. This time around, they’re not playing nice. In fact, they nearly packed a baseball stadium with workers ready to strike.

(Source: MyNorthwest.com)

Boeing’s new CEO, Kelly Ortberg, who started just last month, says he wants to “reset our relationship” with the union. But the union’s president, Jon Holden, isn’t buying it. He’s made it clear that any deal must recapture some of the concessions the union made in the past, or else the strike is on. And if that happens, Boeing’s already precarious situation could turn into an all-out disaster.

And just when you thought things couldn’t get worse, Boeing’s space division is having its own little meltdown. The company’s Starliner capsule, which was supposed to ferry astronauts to and from the International Space Station, has been grounded after a series of technical failures. As a result, two astronauts who were supposed to come back home on a Boeing ride are now getting a lift from SpaceX. Yes, you read that right—Elon Musk’s SpaceX is stepping in to save the day.

So could this all be an overreaction and just create a better dip buying opportunity? In my view, Boeing’s projected EPS of $4.08 for 2025 might lure in some investors thinking they’re getting a steal, especially when you stack it up against Lockheed Martin, boasting an EPS north of $27. 

Sure, on paper, Boeing looks like the cheaper option, but that’s just surface-level stuff. Analysts are tossing around low-end price targets of $119, and when you throw in potential worker strikes and a slew of operational misfires, Boeing’s looking more like a ticking time bomb than a solid investment. If you’re thinking this is a good deal, it might be more like reaching into a blender with the power still on.

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