Boeing (NYSE:BA) is facing hurdles as it seeks to identify a suitable candidate for its next Chief Executive Officer (CEO). According to the Wall Street Journal, several ideal candidates, including GE Aerospace (GE) CEO Larry Culp, Boeing COO Stephanie Pope, and Spirit AeroSystems (SPR) CEO Patrick Shanahan, have declined offers to lead the company.
It should be mentioned that the CEO search began in March after current Boeing leader David Calhoun announced his plans to step down by year-end. This decision came on the heels of a major safety incident in January where a Boeing 737 experienced a mid-air fuselage breach.
The new CEO will have to address a number of issues, including managing the aftermath of this mishap. It’s important to highlight that Boeing is facing a horde of other issues, such as quality concerns, supplier problems, and production delays leading to lower deliveries. Moreover, the company is expected to remain under the scrutiny of regulators.
Top Analysts Remain Bullish
Despite the company’s never-ending troubles, two Top-rated Analysts, Chloe Lemaire from Jefferies and and Kenneth Herbert from RBC Capital, assigned a Buy rating to Boeing stock yesterday.
Lemaire expects Boeing’s 787 production levels to recover in 2025, and thereby support its cash position. Further, she believes that the company’s focus on its service offerings could accelerate growth. (To watch Lemaire’s track record, click here.)
Is BA a Good Buy Right Now?
Overall, Wall Street analysts are cautiously optimistic about the company. BA has a Moderate Buy consensus rating based on 17 Buys, seven Holds, and two Sells assigned in the past three months.
The analysts’ average price target on Boeing stock of $213.70 implies 19.79% upside potential.
