Stock price when the opinion was issued
Aerospace will benefit from global travel over the long term. Appears on-schedule to absorb the charges required to replace faulty engine components. Valuation catchup once this issue is behind them. After-market stream of revenue for servicing parts is very profitable. Yield is 2.46%.
With all the geopolitical uncertainty, the defense side should see strong growth. Order backlog is at historical highs.
An aerospace and defence aspect to it. There is interest due to geopolitics (eg. Ukraine, Israel, Taiwan). The safety of the aerospace aspect of this business is a good thing to have. Good growth in this area. New plane adoption is ramping up, due to fuel efficiency making money for airlines. Had a stumble a number of years ago due to discovery of contaminants in their production. They recovered from it. Knows that markets tend to forgive mis-steps if there is a constructive solution.
(Analysts’ price target is $132.95)
Took a large write down and hit to reputation due to metal contamination in engines. Most of the issue has been corrected. As you correct problems, the market starts to forgive. Not too late to get in. Reasonable valuation, sound business, aerospace side has lots of runway.