After China decided he would no longer receive the delivery of Boeing Aircraft (BA), prominent investor Stephanie Link said yesterday that the news “clearly applies to Boeing at this time.”
Link, who owns BA Stock and has called the name her best choice for 2025, is the chief investment strategist of Hightower Councilors.
Link explains why the news is “irrelevant” for BA
Boeing was “supposed to achieve 10 of its 737 planes to China in the next few weeks, and they'll probably go somewhere else,” Link noted. At this point, the US aircraft manufacturer has a total of 130 unfilled orders from China, and the total number of unsecured orders represents only 2% -3% of the company's total backlog, the investor noted.
“If (the boycott) lasts years, that's a problem,” Link argued.
Positive Catalyst up by Boeing
Noting that the average age of aircraft in China and the world is 10 years old and 15 years, respectively, Link expects Boeing's maintenance business to be a positive trigger to its margins going forward.
BA Stock Price Action
In the past 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 in Insider Monkey.