Boeing (NYSE:BA) slightly raises 20-year forecast for China's airline market, forecasting the country will need 8,700 new aircraft valued at $1.47T by 2040 to meet rising air travel demand.
In its annual commercial market outlook, Boeing notes the Chinese market's resilience during COVID-19 and estimates the market opportunity for commercial aviation services in the region at nearly $1.8T.
China's economic fundamentals and a middle income demographic that is expected to double in two decades underpin the anticipated increase in air travel, Boeing says.
Separately, Vertical Research analyst Rob Stallard still sees "a lot of uncertainty" around the outlook for Boeing's critical 787 and 737 MAX programs, prompting him to cut his estimates for the company's delivery, earnings and cash flow estimates as well as its stock price target.
Noting that China still has not re-certified the MAX for commercial flight, and the U.S. Federal Aviation Administration has not yet given Boeing permission to restart 787 deliveries, Stallard trims his estimate for FY 2022 EPS to $5.76 from $5.90 and his price target to $240 from $250; he continue to rate the stock a Hold.