Monday was a busy day for Boeing (BA +2.57%) investors. Not only were they hit with the news that CEO David Calhoun is planning to stand down as CEO of the embattled aviation manufacturer at the end of 2024, but a TD Cowen analyst cut the price target on the stock from $275 to $230 while maintaining an "overweight" rating on the stock.
NYSE: BA
Key Data Points
CEO David Calhoun announces he's standing down
Unfortunately, Boeing's creditability has been damaged by high-profile incidents that call into question its production quality and strategic direction. A new CEO may be just what the company needs. Fortunately, Boeing's board of directors has improved in recent years by adding industrial heavyweights like former General Electric Aviation CEO David Joyce, current Carrier Global CEO and former Collins Aerospace COO David Gitlin, former United Technologies CFO Akhil Johri.
As such, investors have reason to believe the board will make the right choice in appointing a new CEO.
The TD Cowen price also makes sense; the previous target of $275 was significantly above the average target price of $252, and analysts needed to adjust to the company's negative news flow in 2024. Still, even the adjusted price target implies a 20% premium to the current price, and no Wall Street analyst has a "sell" rating on the stock.
Is Boeing stock a buy?
There's undoubtedly a value case for the stock. Still, many of the same arguments you need to believe in to buy Boeing also apply to other stocks, and they come without question marks about a company's operational performance. That is certainly the case with Boeing.
