Goldman Bullish On Aerospace Due to China Opportunity (BA) (PCP) (GE)
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10 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Analysts at Goldman Sachs made positive comments on the Aerospace sector today following a trip to China, which reinforced their bullish outlook as they expect 1 billion Chinese to take to the skies.
Goldman noted that China is absorbing 15% of the annual large aircraft deliveries of Airbus and Boeing. They expect this to grow to 20% over the next 20 years as China requires 4,000 new large commercial aircraft.
The firm's top picks across the sector remain Embraer SA (NYSE: ERJ), Precision Castparts Corp. (NYSE: PCP), Boeing Co. (NYSE: BA), BE Aerospace Inc. (Nasdaq: BEAV), Safran, MTU, United Technologies (NYSE: UTX), General Electric (NYSE: GE), Cathay Pacific, China Eastern, and Shanghai International Airport.
Goldman also discussed China’s emerging civil aerospace industry, saying they have previously underestimated the rate of progress. "We believe China will deliver its first narrow body aircraft in 5-8 years, and its first domestically produced aero engine and its first wide body aircraft in 10-20 years. This is a longer-term concern for Western air-framers and their suppliers but is an issue they are considering now."
Goldman noted that China is absorbing 15% of the annual large aircraft deliveries of Airbus and Boeing. They expect this to grow to 20% over the next 20 years as China requires 4,000 new large commercial aircraft.
The firm's top picks across the sector remain Embraer SA (NYSE: ERJ), Precision Castparts Corp. (NYSE: PCP), Boeing Co. (NYSE: BA), BE Aerospace Inc. (Nasdaq: BEAV), Safran, MTU, United Technologies (NYSE: UTX), General Electric (NYSE: GE), Cathay Pacific, China Eastern, and Shanghai International Airport.
Goldman also discussed China’s emerging civil aerospace industry, saying they have previously underestimated the rate of progress. "We believe China will deliver its first narrow body aircraft in 5-8 years, and its first domestically produced aero engine and its first wide body aircraft in 10-20 years. This is a longer-term concern for Western air-framers and their suppliers but is an issue they are considering now."
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