Investment bank Goldman Sachs has added shares of the American aircraft manufacturer Boeing and the military-industrial company Raytheon Technologies, which supplies weapons and military equipment to the US Army and its allies, to its list of stocks that are confidently recommended for purchase, Market Watch writes.
Goldman Sachs said Boeing shares provide a rare cyclical investment opportunity before potential market improvements begin, adding that the rate of cancellation of aircraft orders has slowed significantly and for wide-body aircraft it has been surprisingly limited.
Meanwhile, industry sources told Reuters that Boeing, as part of a cost-cutting strategy, is close to moving production of more 787 Dreamliners to South Carolina, weakening its iconic Everett plant north of Seattle, where it produced a record 787 aircraft last year.
But the strategy to support the two plants has come under serious strain with the plummeting international flights due to the coronavirus, in addition to cyclical drops in demand for large aircraft.
Raytheon is “too high quality and well placed,” trading at 11% of free cash flow.
Goldman Sachs said Boeing shares provide a rare cyclical investment opportunity before potential market improvements begin, adding that the rate of cancellation of aircraft orders has slowed significantly and for wide-body aircraft it has been surprisingly limited.
Meanwhile, industry sources told Reuters that Boeing, as part of a cost-cutting strategy, is close to moving production of more 787 Dreamliners to South Carolina, weakening its iconic Everett plant north of Seattle, where it produced a record 787 aircraft last year.
But the strategy to support the two plants has come under serious strain with the plummeting international flights due to the coronavirus, in addition to cyclical drops in demand for large aircraft.
Raytheon is “too high quality and well placed,” trading at 11% of free cash flow.