Boeing (BA) received a downgrade from Bernstein analysts over concerns about the plane maker's recovery timeline after a year plagued with safety and production challenges and an ongoing strike.

"While Boeing should eventually recover to its long-held industry position, we are more skeptical on when it will happen," wrote Bernstein analyst Douglas Harned and his team on Tuesday.

Harned and his team lowered their rating on the stock to Market-perform from Outperform and cut their price target to $169 from $195.

“We have stressed the need for a compelling recovery plan,” wrote Harned. “We need to see specifics on the plan for recovery and rebuilding leadership talent.”

This week Boeing raised more than $21 billion in capital, a move widely expected by Wall Street amid the company's ballooning debt.

On Wednesday shares rose more than 1% after the International Association of Machinists and Aerospace Workers (IAM) said it had a "productive" meeting with Boeing, the first face-to-face meetup since its union members rejected the company's latest contract offer.

Last week the industrial giant reported a quarterly net loss of $6.17 billion, bringing total losses in 2024 so far to nearly $8 billion.

Earlier this month the company announce a workforce reduction of 10%, or roughly 17,000 jobs, and delay the first delivery of its 777X jet to 2026.

“We see the headcount reduction program as a distraction. Excess overhead is real, but not at the root of Boeing’s issues, and near-term cash is no longer needed. There will be a better time for this,” wrote Bernstein's Harned.

Boeing has been helmed by a new CEO since August amid an overhaul in safety measures and production processes sparked by a January mid-flight incident, when a door plug blew out during an Alaska Airlines (ALK) Boeing jet.

The ongoing union strike which began on September 13 is estimated to have cost Boeing, its workers and suppliers nearly $10 billion in lost wages, earnings, and supplier losses, according to Anderson Economic Group.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

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