Company News

BUZZ-Boeing to power aerospace stocks toward solid Q2, all eyes on Farnborough - CS

** Credit Suisse says aerospace sector to see solid second quarter on the back of Boeing’s operational excellence; raises PT to $455 from $443

** While some investors expect BA to launch its Next Midsize Airplane (797) at the Farnborough Airshow (which typically attracts large numbers of airline orders), broker say this announcement may be “premature”

** Expects rising passenger traffic to fuel a strong quarter for commercial aftermarket stocks such as Bombardier, Airbus and Embraer

** Now that A220 Jets (formerly CSeries) is firmly under AIR’s wing, broker expects it to be the talk of the town and Farnborough to be a catalyst for additional orders

** CS says Bombardier’s Q2 to be in-line with what co has guided; raises PT to $7 from $5.68

** Says with all eyes on the A220 Jet, Bombardier will likely redirect attention to its legacy CRJ/Q400 aircraft portfolio; however, it’s too early to see any noticeable impact from this shift, adds CS

** Last week, Boeing struck a deal for a controlling stake in the commercial aircraft arm of Embraer SA

** Timing of the Boeing/Embraer JV announcement appears to be a “deliberate” attempt to generate buzz at Farnborough, says CS

** YTD, S&P 500 Aerospace And Defense index up 3.4 pct with Boeing being among the top performers at 15.5 pct gains in the index

** Farnborough Air Show will be held outside of London from July 16 to 22 (Reporting by Jasmine I S in Bengaluru)