Boeing share price: what next as new CEO takes charge after torrid 2019?
David Calhoun took the helm at Boeing on Monday, but the company’s new boss has a mammoth task ahead of him, with the 737 Max crisis damaging its reputation among regulators and passengers.
Boeing saw its new chief executive officer (CEO), Dave Calhoun, take charge on Monday, with him tasked with navigating the beleaguered aerospace company through the 737 Max crisis which has immeasurably damaged its reputation among regulators and passengers.
Documents released by Boeing last week showed that during the development of the 737 Max aircraft key employees at the company opted to hide safety issues and deceive regulators.
In the document, one worker stated in an internal message to a colleague that ‘this plane was designed by clowns who are in turn supervised by monkeys.’
In an interview with NPR, Scott Hamilton, an aviation industry consultant at Leeham Company said that the document showed ‘disdain’ and ‘contempt’ for regulators and, while in the long run, will not impact Boeing getting the 737 Max re-certified by regulators the company struggle to restore passengers confidence.
‘I'm just shaking my head and rolling my eyes,’ Hamilton said. ‘This is another black eye for Boeing… It's going to affect the ability to restore confidence in the travelling public.’
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Analysts upbeat about Boeing over the long-term
Despite the myriad of challenges the company faces, the 20 analysts offering 12-month price forecasts for Boeing have a median target of $367.50, with a high estimate of $521 and a low estimate of $300, according to data compiled by CNN Business.
Based on the company trading at $333.24 as of 17:30 GMT on Monday, the median price target implies a potential upside for the stock of 10.2%.
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Boeing to shut down 737 Max production
In January, Boeing announced that it plans to shut down its 737 Max production, which will see around 3000 workers relocated to other facilities across the group.
The company said that it doesn’t plan on cut any jobs as a result of the ongoing 737 Max crisis, but the situation has impacted its suppliers, with Spirit Aerosystems, which makes fuselages for the aircraft, announcing that it plans to layoff around 2800 workers.
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