After China reportedly decided that it would no longer accept deliveries of Boeing’s (BA) planes, prominent investor Stephanie Link yesterday said that the news was “clearly not material for Boeing at this time.”
Link, who owns BA stock and has called the name her top pick for 2025, is the Chief Investment Strategist of Hightower Advisors.
Link Explains Why the News Is “Immaterial” for BA
Boeing “was supposed to deliver 10 of its 737 planes to China in the next couple of weeks, and they will probably go elsewhere,” Link stated. At this point, the U.S. plane manufacturer has a total of 130 unfilled orders from China, and the total undelivered orders represent just 2%-3% of the firm’s total backlog, the investor stated.
“If (the boycott) lasts years, that’s a problem,” Link contended.
Boeing’s Upcoming, Positive Catalyst
Noting that the average age of planes in China and the world is 10 years and 15 years, respectively, Link expects Boeing’s maintenance business to be a positive driver of its margins going forward.
The Recent Price Action of BA Stock
In the last month, the shares are down 11%, while they have retreated 7% in the last three months.
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Disclosure: None. This article is originally published at Insider Monkey.
