Finally, the “door plug” hearing for aerospace company Boeing (BA), in which it faced down the National Transportation Safety Board (NTSB), has concluded. In addition, Robert “Kelly” Ortberg has been installed as the new CEO, and some might be wondering what is next for Boeing from here? Based on the fractional loss in Boeing shares, it doesn’t look like much of anything good.
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The hearing did not start well for Boeing, as NTSB Chair Jennifer Homendy proceeded to blame Boeing for injuries not only to the passengers themselves but also to their psyches. Homendy declared, “Injuries we can’t see, which we often don’t talk about, can have profound and lasting impacts on lives and livelihoods.” True, but so impossible to quantify that even talking about it does little good.
But Boeing gave little help to its own case, revealing that, to this day, no one knows how the plane was shipped to Alaska Airlines (ALK) with four critical bolts missing. Not Boeing, and not the NTSB, even after 20 hours of testimony and seven months of investigation before the testimony. Worse, it started to look like a process that would inevitably repeat itself, with NTSB board member Todd Inman saying, “Is it just me, or are we seeing a game of whack-a-mole every five or 10 years on issues related to safety?”
Ortberg Takes Seattle
Meanwhile, in a bid to demonstrate that Boeing has turned around, the new outsider CEO has declared he will return to Seattle, where the bulk of Boeing’s manufacturing is. Given that Boeing has its corporate headquarters in Washington, D.C., the move is seen as somewhat odd.
But it’s also regarded as a clear sign of change. Some wondered if perhaps Boeing would follow up Ortberg’s move by moving the headquarters back to Seattle as well. Oddly enough, this was tried back in February, but the board actually blocked the shareholder proposal that would have seen the headquarters move. Of course, this was before the CEO moved back to Seattle, so a subsequent attempt may ultimately work out.
Is Boeing Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 29.74% loss in its share price over the past year, the average BA price target of $218 per share implies 30.23% upside potential.
