The Zhitong Finance APP learned that Bernstein will boeing (BA. US) was named the top choice for aerospace and defense stocks in 2022. The bank believes that now is a good time to invest in Boeing, as a series of catalysts will emerge in the first and second quarters of 2022.
With Boeing's 737 Max aircraft likely to resume commercial flights in China within weeks, its 787 Dreamliner will also resume deliveries in the second quarter, which will bring strong free cash flow to the company.
Bernstein analyst Douglas Harned said: "Boeing is our first choice and the company is expected to usher in two recoveries. First, the broader commercial aviation market will finally move towards recovery; Second, we see Boeing emerging from the worst special problems associated with the company. ”
Analysts note that 55 percent of Boeing's revenue in 2020 will come from the defense business, which will continue to generate stable cash flow of about $3 billion a year, despite slow growth; In addition, the cargo aircraft market will also remain stable.
Boeing's annual order delivery data released on Jan. 12 shows that it received 909 orders in 2021; If you take into account the order cancellation data, you get a net order growth of 535 aircraft, not only much higher than the 184 in 2020, but also surpass the competitor Airbus in terms of total order volume and net order growth.
Boeing will announce its fourth quarter 2021 financial results on January 26, 2021. Analysts said the market would focus primarily on "the state of the 737 Max and 787 and the company's views on the delivery prospects for both models" in the earnings report.