The old saying goes, a fish rots from the head down. No one’s sure exactly where it came from, but it’s demonstrated its validity over the years. And at Boeing (NYSE:BA), they’re taking it seriously. The beleaguered aircraft maker revealed that its management shakeup is continuing, as Boeing’s CEO, Dave Calhoun, will be leaving at the end of the year. Investors were glad to hear it, sending shares up modestly in Monday afternoon’s trading.
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Not only will Dave Calhoun be out of Boeing when the ball drops on 2024, he won’t be alone. Preceding him into departure will be current board chairman Larry Kellner, who won’t be running for reelection in May. Instead, Steve Mollenkopf will step into the role. A former Qualcomm (NASDAQ:QCOM) executive and director with Boeing since 2020, Mollenkopf should be able to help deliver results in that role.
In fact, Mollenkopf will have a lot of say in the new CEO, reports note, as he’ll be chair during that search. For his part, Dave Calhoun revealed that the plan to depart Boeing was “100%” of his own making, calling for Boeing to “…slow down a bit and let the supply chain catch up.”
Boeing Needs More than New Faces
There’s no doubt that Boeing has engaged in plenty of change in recent days, but is it sufficient? Boyd Group’s president Mike Boyd isn’t so sure, offering up recent commentary that declares what Boeing needs is not “new faces” but rather “a whole new thinking.” Admittedly, new faces are commonly a good way to get new thinking, but the change may not be enough.
Boyd expects the leadership change to prove a positive move, but may not be enough unless it can bring about a much larger change throughout the company, not just in the boardroom.
What Is the Prediction for Boeing Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 4.47% loss in its share price over the past year, the average BA price target of $252.37 per share implies 32.08% upside potential.
