While China’s economy is in the doldrums at present, aerospace major Boeing (NYSE:BA) sees substantial demand for its planes from the country in the long term. Over the next 20 years, Boeing anticipates a demand for 8,560 new commercial planes from the country, owing to economic growth and rising domestic air travel.
According to Boeing’s Commercial Market Outlook (CMO), the commercial airliner fleet in China will more than double to about 9,600 planes, and the country will make up for 20% of the globe’s airplane deliveries in the next 20 years.
China’s domestic aviation market is expected to become the largest in the world during this period, driving demand for 6,470 single-aisle planes like Boeing’s 737 MAX offerings. Additionally, the company also expects a demand for 1,550 widebody airplanes in China through 2042. Its commercial fleet is anticipated to generate a demand worth $675 billion in aviation services during this period.
What Is the Prediction for Boeing Stock?
Overall, the Street has a consensus price target of $261.15 on Boeing, alongside a Moderate Buy consensus rating. Shares of the company have surged by nearly 41% over the past year.
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