Boeing in Turmoil: Returning to Course Remains Challenging

Boeing experienced a year full of challenges in 2024 instead of the hoped-for comeback, leading to a massive drop in its stocks. With a decline of 35%, the aircraft manufacturer ranks among the largest losers in the S&P 500 Index. Despite stabilization in recent weeks, investor skepticism remains high, especially in light of the crises in 2024 that shook their confidence and potential trade conflicts under future President Donald Trump. At the beginning of the year, Boeing seemed to be recovering from the impacts of the deadly plane crashes in 2018 and 2019 and the downturn in global travel during the pandemic. With an easing of relations with China, rising orders, and the highest stock price in nearly two years, Wall Street was optimistic. However, a series of incidents, including a spectacular incident with a plane during an Alaska Air flight, led to intense public debate about corporate practices and culture at Boeing. The resulting uncertainty led to a drastic drop in analysts' earnings forecasts. While a year ago they expected a profit of $4.18 per share, they now forecast a loss of $15.89 per share, the worst since 2020. Expectations for the years 2025 to 2027 have also been cut by more than half. Analysts now expect only a modest recovery in Boeing shares. The average 12-month price targets indicate a potential increase of about 7%. Concerns that Boeing's global supply chain could be vulnerable if protectionist measures are implemented by the new US administration are significant.