Benzinga - by Surbhi Jain, .
As Boeing Co (NYSE:BA) continues to tread a turbulent trajectory, with its stock down 32% YTD, investors are getting more anxious with each passing day. Now, with the company reporting in 8 days, investors and analysts are pivoting their attention to its Q1 earnings.
Boeing’s New CEO Appointment – A Pivotal Moment
In a note, RBC Capital Market analyst Ken Herbert highlights the critical decision Boeing faces in appointing its new CEO.While mentioning Larry Culp, Pat Shanahan, and Wes Bush as the top candidates for the position, Herbert identifies Culp as the “clear favorite” among investors for Boeing’s future. According to Herbert, Culp’s leadership could mark the beginning of a new era, focusing on crucial aspects like balance sheet management, execution improvement, and restoring confidence among customers and suppliers.
Herbert rates the stock Outperform, while reducing his price target from $225 to $215.
Boeing Has Been Facing A Turbulent Trajectory
The last six analyst review and ratings on Boeing stock (since April 8) have seen price targets for the stock being reduced. See details here.Investor anticipation is high, recognizing the potential for a significant stock catalyst upon the CEO announcement.
Boeing has consistently made headlines since January. On April 9, Benzinga reported on the series of events that have influenced Boeing’s stock performance since then.
In just the past few days, new developments have emerged that continue to impact the stock and heighten investor concerns.
- April 12: Southwest Faces Further Reductions In Expected Boeing Jet Deliveries: Report
- April 15: Delta Flight Returns To Atlanta After Takeoff: Boeing 757 ‘Yawing Aggressively’
- April 16: Boeing Severs Ties With Lobbying Firm Involved In 737 Max Crisis Management: Report
Boeing’s Operational (In)Efficiency Concerns BofA Securities’ Analyst
Meanwhile, BofA Securities’ Ronald J. Epstein drew attention to Boeing’s recent delivery pace. Per Aero Analysis Partners/AIR, Boeing delivered only three 737s by mid-April amid ongoing FAA inspections. Concerns loom over the company’s operational efficiency.While Boeing grapples with market share losses and reputational risks, BofA maintains a Neutral stance on the stock, acknowledging both the company’s participation in the aerospace recovery and its challenges. Epstein has a price target of $190 on the stock, implying an upside of 12%.
As Boeing undergoes management transitions and faces government investigations, investors are confronted with balancing short-term uncertainties against the long-term prospects of global air travel demand.
BA Price Action: Boeing stock was up 1.05% at $169.59 at the time of publication Tuesday.
Read Next: United Airlines Q1 Earnings Preview: Analyst Estimates, Safety Concerns, Underperformance To Delta — Key Items To Watch
Photo: Shutterstock
Latest Ratings for BA
| Mar 2022 | Cowen & Co. | Maintains | Outperform | |
| Jan 2022 | Jefferies | Maintains | Buy | |
| Jan 2022 | Morgan Stanley | Maintains | Overweight |
View the Latest Analyst Ratings
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