Boeing assumed with a Buy at Citi

Citi analyst Jason Gursky assumed coverage of Boeing with a Buy rating and price target of $222, up from $209. The analyst expects the "return of great power competition" to drive U.S. and European defense budgets higher, "providing a lock on growth this decade." This provides a path to 5%-plus industry growth, which compares favorably to the 0% to 3% that it currently priced into defense stocks, Gursky tells investors in a research note. He expects future budget proposals / appropriations to provide increased visibility and act as catalysts. In commercial aerospace, Gursky is positive on the cycle as air traffic normalizes post-pandemic but is more constructive on original equipment exposed names versus aftermarket on the view that an acceleration of retirements is likely by mid-decade.