The tariffs are restricted to smaller planes with empty takeoff weights of 15K-45K kgs, which would affect the existing version of the single-aisle Boeing 737, which is being phased out, and the smallest type of the replacement 737 Max, which has only a handful of orders from Chinese customers; together, these account for just 5% of Boeing’s 737 backlog.
“With a strong order book, a booming commercial aerospace market and only two global manufacturers, China will need [Boeing] aircraft for many years,” says CFRA analyst Jim Corridore. “We think the stock has well overcorrected on trade worries, and would use today’s likely weakness as an enhanced buying opportunity.”
Now read: Nick's Portfolio Review Q1 2018 »
Subscribe for full text news in your inbox