BA
Airbus, Boeing fly in different directions at Farnborough
Article Summary
HOLD- Airbus (OTC: EADS) and Boeing (NYSE: BA) presented differing outlooks for commercial aircraft development at Farnborough airshow, with Airbus outlining long-term A320 replacement planned for second half of next decade and Boeing emphasizing improved 737 MAX rather than new aircraft.
- Airbus unveiled longer, lighter and folding wing structure designed to reduce fuel consumption by up to 30% with test flights to begin this year, while Boeing emphasized need to grow production to 47 planes per month from 38 currently driven by 737 cashflow.
- Boeing emphasized financial stability, technology readiness, and mature market readiness before launching new aircraft, while Airbus emphasized financial strength and technology readiness.
- Engine manufacturers CFM International and Safran are advancing Leap and open-fan engines to meet both companies' needs, with CFM's Leap engine expected to power nearly 60% of Boeing 737 MAXs and nearly 60 percent of Airbus A320neo planes, while the open fan engine currently in development is expected to be fully operational by 2026.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 32.7% | 25% | 85.0 ptsExcellent (32.7%) - Strong growth |
| EPS Growth Next 5Y ? | 87.4% | 25% | 100.0 ptsExceptional (87.4%) - Very high expectations |
| Target Price Upside ? | 29.4% | 20% | 75.0 ptsSignificant Upside (29.4%) - Target: $270.84 vs Current: $209.23 |
| Gross Margin % ? | 4.8% | 15% | 10.0 ptsRazor-Thin (4.8%) - Weak pricing power |
| Drawdown from 52-Wk High ? | -17.7% | 15% | 40.0 ptsMild Pullback (-17.7%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About BA
- The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide.
- The company operates through three segments: Commercial Airplanes; Defense, Space & Security; and Global Services.
- The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements.
- The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration.
- The Global Services segment offers products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers.
- The Boeing Company was incorporated in 1916 and is based in Arlington, Virginia.