Demand For BA’s Civil Aircrafts Remain Strong

Analysts at Jefferies & Co maintain their "buy" rating on Boeing BA. The target price for BA is set to $84. According to Jefferies & Co, “The early highlights for June point to higher growth rates than May. The traffic data, according to the Association of European Airlines, indicates June could show year-over year growth in the range of 6-7% vs.May in the 5% range…. We believe that the US air travel market reflects improving fundamentals for demand. Due to the lack of orders, capacity has shrunk by over 15% during the past decade.” “We get the sense that there should be in excess of 100 orders for 737's from domestic carriers by year-end. American (AMR) needs to continue to replace its MD-80's with 737's, and Southwest (LUV) may elect to retire the balance of its older 737's on an accelerated basis…. We believe that recent market reaction to concern that Dubai Aerospace Enterprises may restructure its 100 plane 737 and A320 order with Boeing and Airbus is overdone. It is our sense that the restructuring has largely occurred, and in an orderly manner. Instead of taking the A320's Emirates has ordered additional A380's,” the analysts mention. More Analyst Ratings here