Skip to Content
Stock Strategist

Boeing's Impressive Orders at Dubai Airshow Boost Strong Growth Outlook

Middle East-based airlines provide support for Boeing's wide-body program, and high barriers to entry safeguard the firm's command of the aircraft market.

Mentioned: , , ,

Narrow-moat  Boeing (BA) announced the official launch of the 777X program on Nov. 17 at the Dubai Airshow, with 259 orders and commitments worth more than $95 billion at list prices. It also announced orders for the 787 program as well as the 737 program, including MAX and Next Generation, with the 737 program reaching more than 1,000 total orders since launch. These orders put Boeing's early take at more than $100 billion, and add to the $344 billion commercial backlog from the third quarter of 2013. Boeing's strong growth rates supported by continued strong orders compelled us to raise our fair value estimate to $120 per share from $113.

The 777X program customers include Lufthansa with 34 airplanes, Etihad Airways with 25, Qatar Airways with 50, and Emirates with 150. Middle East-based airlines continue to provide support for wide-body programs at both Boeing and Airbus.

Neal Dihora does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.