Boeing Stock (NYSE:BA)
According to a note sent to Wells Fargo’s customers on Wednesday, the equities research team has added Boeing (NYSE:BA) as one of its high-conviction ideas. The message was sent out to its clients.
According to the company, Boeing stock is an investment that capitalizes on the long-term development prospects of the aviation industry. In addition, the financial institution brought attention to three aspects that further support BA. These are the company’s excellent cash flow, an under-supplied market, and a relaxation surrounding growth worries.
According to the information provided by Wells Fargo, there would be “strong cash generation through 2025 as new aircraft investment reduces to new lows, production recovers to high rate, and mix improves.”
“Since the MAX planes were taken out of service in 2019, both Boeing and Airbus have been unable to meet the demand for new passenger airplanes. “Our supply-demand analysis finds plenty of demand to support mid-decade rates targeted by the OEMs, with room to move higher as in prior cycles,” the company added, noting that the reopening of China removes other “major bottlenecks to growth.” In addition, the firm found that there is room to move higher than in previous cycles.”
The aircraft manufacturing company Boeing is owned by 167 exchange-traded funds, the top three of which are the First Trust Indxx Aerospace & Defense ETF (MISL), the iShares U.S. Aerospace & Defense ETF (ITA), and the Invesco Aerospace & Defense ETF. This allows investors to take a more diversified approach to the company.
Boeing stock, up 1.7% on Wednesday, skyrocketed by 60% in the fourth quarter due to the company’s success in winning new contracts, one of which was a significant agreement with United Airlines.
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