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3 Aerospace Firms Trading at Attractive Valuations

We think demand will remain solid for narrow-body aircraft, with Airbus Group, United Technologies, and Safran leading the way.

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Chris Higgins: This year marks the start of an unprecedented production increase in narrow-body passenger aircraft like the Airbus A320 and Boeing 737, a category that is a major profit-driver within the commercial aerospace upcycle. Although investor sentiment reflects ever-deepening worries over a possible aerospace downturn, we think demand will remain solid. We've highlighted three firms with economic moats trading at attractive valuations: Airbus Group, United Technologies, and Safran.

Airbus and Boeing will capture 90% of the narrow-body market through 2035 thanks to the introduction of new engines on their A320 and 737 aircraft. However, Boeing's lagging order book means Airbus enjoys an advantage.

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