Boeing Analyst: CFO Faces 'No Shortage Of Challenges' In New Role

Boeing Co BA shares traded slightly higher on Thursday after the company announced a new CFO on Wednesday.

What Happened? Boeing announced Refinitiv CFO Brian West will take over as Boeing CFO in August. West has previously worked closely with Boeing CEO David Calhoun.

Related Link: Why Cowen Is Bullish On Boeing: '2022-24 Look Brighter'

Why It’s Important: On Thursday, Bank of America analyst Ronald Epstein said West brings plenty of experience to his new position, but Boeing still faces tremendous financial hurdles.

“Despite his wealth of experience, West will have no shortage of challenges in his new role, including an extended balance sheet, potential capital demands for a new narrowbody model, and financial challenges related to Boeing’s struggling programs in both Commercial and Defense,” Epstein said.

He also reiterated his Neutral rating and $265 price target for Boeing.

Current Boeing CFO Greg Smith announced his retirement in April. Boeing Treasurer Dave Dohnalek will serve as interim CFO until West takes over.

A recovery in air traffic in 2021 following the global rollout of COVID-19 vaccines has investors feeling optimistic Boeing can get back on the right track in the second half of the year. However, there’s no question the company will be left with financial scars from the pandemic, including its $63.6 billion in debt following a $25 billion bond sale orchestrated by Smith last year.

Benzinga’s Take: Much like airline stocks, Boeing shares have bounced back tremendously from March 2020 lows as investors anticipate a sharp recovery in 2021 and beyond.

The biggest question marks at this point are just how long will it take for global air traffic to recover to 2019 levels and how much of that recovery is already priced into Boeing’s stock.