August 1, 2023

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.