Those hoping for a quick turnaround at aerospace giant Boeing (BA) may be disappointed. At least that’s what Bill George, a “leadership guru,” says, who says tough times at Boeing may not be over just because a new CEO is in place. In fact, he believes it could take a decade for things to improve. Boeing shares slumped accordingly, recording a slight decline on Monday afternoon.
In A Yahoo Finance In an interview, George stated that Boeing has been “…going down the wrong path for 20 years.” This means the entire company needs to rethink its approach, although according to some whistleblower reports, there are at least some people at Boeing who are more than willing to do just that.
Meanwhile, new CEO Robert “Kelly” Ortberg may have begun just such a process, meeting with the presidents of IAM 751 and W24, two unions Boeing currently works with. Ortberg attended “to have a productive conversation and to listen,” he noted. The two unions represent about 33,000 workers, and the collective bargaining is considered the “first big test” Ortberg will face.
Boeing wants to exit the space launch business
Remember all the terrible things we heard about Boeing’s Starliner project? Or its space launch systems? Well, reports suggest that Boeing may be trying to get out of the space business, or at least the space launch business. Boeing is currently in talks with Sierra Space, part of Sierra Nevada Corporation, about selling the launch business.
Boeing and Lockheed Martin (LMT), also founders of United Launch Alliance, have tried to get rid of the launch business before, and this appears to be just the latest attempt. Talks are still in the early stages, but given the bad reputation Boeing has suffered in recent months, Sierra Space may find Boeing a very motivated seller.
Should I buy, sell or hold Boeing?
As for Wall Street, analysts have issued a consensus recommendation for BA stock of Moderate Buy, based on 15 Buys, five Holds, and one Sell recommendation over the past three months, as shown in the chart below. After a 21.74% loss in the past year, the average BA price target of $217.47 per share implies an upside potential of 22.04%.
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