Boeing (BA) reached a tentative agreement with the International Association of Machinists Districts 751 and W24 labor unions — which represent nearly 33,000 Boeing factory workers — over the weekend. One aspect of this deal is that Boeing promised a 25% pay increase for workers over the next four years. The current contract is still set to expire on Thursday, September 12.

BofA aerospace research analyst Ron Epstein sees "further upside" in Boeing's stock as it moves higher Monday morning, noting the positive news for the aircraft manufacturer if effectively avoids a union strike.

"So if they can get this behind them and this is just one less thing that they have to worry about, that's a that's a big win," Epstein says. "And then the second thing I would say, you have a new CEO who's been in the role for a couple of weeks. And if they can get through this without a strike, this would definitely be seen as, I think, a huge win for Kelly Ortberg. Like I said, who just hasn't been there that long, kind of setting up a new footing with labor."

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This post was written by Luke Carberry Mogan.