A LONG TERM OPPORTUNITY IN AEROSPACE — BOEING (BA) JUMPS 7% ON EARNINGS
By Nigam Arora & Dr. Natasha Arora
Signal(s) to enter, add, reduce, exit, hold or change.
Boeing represents a long term opportunity. Here are the key points:
- Boeing is a duopoly with Airbus for large commercial aircrafts.
- Air traffic is dramatically increasing in emerging markets such as India, China, Middle East, and Africa. Boeing is a beneficiary.
- Boeing has a very large defense business. The defense business has been troubled, but Boeing seems to be moving past its troubles.
- Since Russia invaded Ukraine, defense spending has been increasing and is likely to continue to increase.
- Boeing has an opportunity to convert its service revenues into reoccurring revenues.
August 1, 2023