So we all know that things have not been great for aerospace company Boeing (BA). But new reports out of the company say that things may be even worse on the inside than expected.
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New reports say that Boeing CEO Kelly Ortberg is not happy with morale inside Boeing. During an employee meeting, Ortberg declared that Boeing was “at a low,” and that everyone “…is tired of the drumbeat of ‘what’s wrong with Boeing?’” Ortberg went on to declare that he too was tired of it.
Worse, Ortberg called out an increasingly fractious culture inside Boeing, declaring that employees “…spend more time arguing than thinking about how we’re going to beat Airbus (EADSY).” At the same time, Boeing is not likely to turn cash positive again until it can get its production levels back up.
Improving Morale
Separately, new word emerged about Boeing’s layoffs. Reports note that, by January, a total of 692 workers will be shown the door in the St. Louis area. This number includes the 111 mechanics that were laid off a week ago. Few areas are spared from product review. Software experts to assembly mechanics are all facing cuts.
And then there is the matter of China, which has been trying to get its own aerospace operations together. With new tariffs likely to come under the Trump administration, the Chinese may have a whole new reason to build their own aircraft domestically. The Commercial Aircraft Corporation of China, or COMAC, has already released the C919 successfully, and the C929 aircraft is not far behind.
Is Boeing a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, six Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 34.85% loss in its share price over the past year, the average BA price target of $193.62 per share implies 35% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
