With aerospace stock Boeing (BA) facing trouble on several fronts—most recently the Air India disaster that left already-concerned investors fearing for a whole new line of aircraft—Boeing leadership needs to be ready to go. And Boeing recently made some changes to its upper-level leadership, bringing in new and experienced hands to help keep the momentum of change moving forward. Investors were modestly pleased, and sent shares notching up fractionally in Tuesday afternoon’s trading.
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The first major change was to Defense Space and Security, which now has a new CEO: Stephen “Steve” Parker. Parker has been effectively in charge of the operation since last September when he was named interim leader. Now, the interim title is official, and Parker is fully in charge. Parker will also be a part of the Executive Council at Boeing.
Parker has been with Boeing since 1988, reports note, and previously managed Boeing Defence Australia, which is the largest non-United-States subsidiary that Boeing has in its portfolio. Parker also led several divisions within Defense Space and Security, including Vertical Lift and Bombers & Fighters, reports from Boeing noted.
A New CFO Too
That was not the only change Boeing made in its top brass, as big a change as that was by itself. Boeing also brought in a new chief financial officer, Jesus “Jay” Malave. Malave takes over for Brian West, who was CFO since Dave Calhoun’s day. West will not be departing the company altogether, reports note, but rather would be serving as an advisor to Kelly Ortberg directly.
Malave, meanwhile, has a background in aerospace and manufacturing. Yet Malave also has, noted Kelly Ortberg, a background as “…a well-respected financial and business leader….” This is seen as a move away from the Jack Welch-style of management in which financials came first. One of the biggest changes that Boeing has made in recent years is to adjust its culture to put safety—and engineering by extension—into a more prominent role. Appointing Malave to CFO is considered a step in that direction by some analysts.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 17 Buys, two Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 13% rally in its share price over the past year, the average BA price target of $226.42 per share implies 7.67% upside potential.
