While China’s economy is in the doldrums at present, aerospace major Boeing (NYSE:BA) sees substantial demand for its planes from the country in the long term. Over the next 20 years, Boeing anticipates a demand for 8,560 new commercial planes from the country, owing to economic growth and rising domestic air travel.
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According to Boeing’s Commercial Market Outlook (CMO), the commercial airliner fleet in China will more than double to about 9,600 planes, and the country will make up for 20% of the globe’s airplane deliveries in the next 20 years.
China’s domestic aviation market is expected to become the largest in the world during this period, driving demand for 6,470 single-aisle planes like Boeing’s 737 MAX offerings. Additionally, the company also expects a demand for 1,550 widebody airplanes in China through 2042. Its commercial fleet is anticipated to generate a demand worth $675 billion in aviation services during this period.
What Is the Prediction for Boeing Stock?
Overall, the Street has a consensus price target of $261.15 on Boeing, alongside a Moderate Buy consensus rating. Shares of the company have surged by nearly 41% over the past year.
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