02:16 PM EDT, 08/01/2024 (MT Newswires) -- Boeing's ( BA ) selection of Kelly Ortberg as new chief executive brings "the right mix of industry knowledge and relationships," and an outsider's perspective, RBC Capital Markets said in a note.

Selecting an outsider is important for cultural and operational shift at the company, following a string of recent problems, the brokerage said Wednesday.

"We believe the 'to do' list will be substantial, but expect the focus for investors now to shift to the long-term [free cash flow] upside as Ortberg eventually takes ownership of the day-to-day operations of the company and looks to reset the mid- and long-term expectations," the analysts said.

One such opportunity is a new contract between Boeing ( BA ) and union employees represented by the International Association of Machinists and Aerospace Workers. The contract is slated to expire Sept. 12, although RBC said a strike is unlikely. But, a deal will provide a positive catalyst for Boeing ( BA ), especially if the company plans to increase deliveries in the second half.

RBC raised price target for Boeing ( BA ) to $220 from $210, while reiterating outperform rating.

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