We are all still kind of reeling from the massive order aerospace stock Boeing (BA) received from Qatar, and with it, something very serious appears to have arrived. A report from Bloomberg suggests that the Qatar order may not just have been the largest in the company’s history, but rather, a massive win for Kelly Ortberg himself. As a result, Boeing shares ticked up fractionally in Thursday afternoon’s trading.
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The Bloomberg report noted that, while Boeing itself was suffering from a negative reputation—back in February, only 27% of respondents in a company-wide survey considered Boeing a “highly recommended” place to work—Ortberg himself had a chance. After all, 42% had confidence in their senior leader’s decision-making ability. A whopping 92%, meanwhile, planned to stay in their jobs for at least another year.
But what the Qatar order did—besides make a piece of company history—was deliver “collective efficacy,” the report noted. “Collective efficacy” basically boils down to “a group’s shared belief in its own capabilities.” That in turn means that, particularly with the biggest order in history in its hands, Boeing is making its way back from the “old days” of falling-apart planes and moving forward. And what changed recently enough to suggest at least a circumstantial link? The move to make Kelly Ortberg CEO. And now, the report noted, “…he now has the credibility to keep building on it,” rather, a message of collective efficacy.
Not Everyone is So Sure
Despite the swing around in Boeing’s fortunes, and internal perception, there are others who are a bit less convinced. United Airlines (UAL), for example, who—it was recently found—would not be a customer for the new Boeing 737 Max 10 jet. At least, not a customer at launch.
Back in 2017, United signed up to be the “Max 10’s inaugural customer, “ moving an order for 100 737 Max jets to 167 Max 10 jets instead. The original plan was to take delivery by 2020, and we all know how that went. But with the Max 10 still under regulatory scrutiny, and the order five years overdue as is, United is reconsidering its position as a launch customer on the new plane.
Is Boeing a Good Stock to Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 14 Buys, three Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 11.89% rally in its share price over the past year, the average BA price target of $207.18 per share implies 0.3% upside potential.
