Boeing shares could fall 15% if sales slow: Barron's
[NEW YORK] Boeing Co's stock could fall as much as 15 per cent if sales of its aircraft fall on weakening demand, according to a report on Sunday in the financial publication Barron's.
Airlines and leasing companies are using planes longer and delaying orders for new aircraft, the publication said.
Low oil prices have also reduced the need to buy updated, more fuel-efficient planes, it added.
Boeing generates roughly two-thirds of its revenue from commercial aircraft, and the remainder from its defense business.
Demand for Boeing's 737 planes remains strong despite competition from Airbus Group SE and Bombardier Inc.
However, its 777 and 787 models are at greater risk, Barron's said.
Boeing's 787 could face write downs because initial costs were high and sales have slowed, it added.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Porsche posts Q1 profit drop on ramp-up costs
Air China orders homegrown C919s in challenge to jet duopoly
Huawei’s smart car tech offers automakers route to China sales
Sri Lanka to hand management of China-built airport to India, Russia companies
Tesla’s plan for affordable cars takes page from Detroit rivals
Toyota is investing US$1.4 billion to build another all-electric SUV in US